|
Stock prices reflect expected forward cash flow. Having the government suck more taxes out of the same financial construct will reduce stock prices and thus capital gains taxes. Likely also reduce dividends as that is what public companies do with excess cash.
So there is a partial broader financial picture of the intricacies of this subject.
As to the governance aspect, public companies are owned by "the public" IE investors. A high % of those shares are owned by professional investor firms, mutual funds, pension funds, endowment funds, etc They do vote their shares and the directors feel those votes. The annual proxy has the board members certifying as to the reasonableness of the CEO compensation, and the Board members stand for re election every 3 years.
To think that public company board rooms are the regulation free environments of the 1920's is naive.
|