Mutual fund investors often represent significant shareholder blocks in big Wall Street firms, but they take little interest in elections of board directors or other proxy matters.
Critics say this built-in apathy toward corporate decisions, combined with new proxy voting rules, has made it easy for big firms such as
"Directors are asleep at the switch because mutual funds are asleep," John Bogle, retired founder of the
The
Further complicating the issue, proxy elections are usually held in April and May, while mutual funds don't disclose their votes until around August.
"By the time shareholders get a picture of what a fund is doing, it's long past the time when it's relevant," Stephen Davis, executive director of