It appears that as an investor, you have the God given right to dictate to a company and its employees.
Correct.
The shareholders own the company.
The employees work for the shareholders.
God has nothing to do with it.
Incorrect unseen. Employees work for the company. Shareholders buy shares into the company hoping to get a return.
Even as a shareholder, you don't get to have much of a say. Even if you were to oppose the remuneration package of the directors, they will see fit to pay themselves.
Here is a snippet from QANTAS to its shareholders dated 26 September 2011:
"The 2011 Remuneartion Report is contained in the Directors' Report set out from page 36 of the 2011 Annual Report. The Report explains Qantas' Executive Remuneration Objectives and Approach, which are to:- attract, retain and appropriately reward a capable Executive team;
- motivate the Executive team to meet the unique challenges Qantas faces as a major international airline based in Australia; and
- link remuneration to performance.
I and my fellow Directors believe that Qantas' Executive Remuneration Framework is commercially and ethically responsible, and supports our objective of providing sustainable returns to shareholders.
Therefore, the Directors recommend that you vote in favour of the Advisory Resolution to adopt the Remuneration Report for the year ended 30 June 2011.
Yours sincerely
Leigh Clifford AO"
The above three points indicate that the Executive is not capable and should not be retained. QANTAS faces the same challenges as Virgin Australia, being based in Australia. Remuneration of the directors should be cut if linked to performance, as the share price has dived and there have been no returns to the valued shareholders for the last few years.
Were the shareholders asked if the CEO could get a 71% pay increase or the rest of the board for that matter? Do the shareholders have a say in the type of aircraft chosen to fly? Do the shareholders have a say in how the company is run? No. No and No.
With the management's ideas and the shareholders' money, the management can blow it any way they want, and it costs them nothing, leaving shareholders like yourself in the dark and waiting for a return on their declining investment.
If you think employees work for the shareholders. Sure. I'm happy to take your money every fortnight and put it in my pocket. My paypacket doesn't change, regardless of the share price. God has nothing to do with that either.