Fidelity’s Dirty Little Secret

It could be the king of shareholder rights. But do its corporate interests get in the way?

Amid all the recent tumult over corporate deceit, excessive CEO pay, and out-to-lunch company boards, one voice has been conspicuously quiet: that of Fidelity Investments, the world's largest mutual fund firm. Fido holds a 10% or greater stake in at least 100 of the nation's largest 1,000 companies and, all told, controls at least $1.3 trillion, more than all hedge funds combined. But Fido rarely exercises its unprecedented muscle to push for improved corporate governance.

Why you ask. That’s exactly what we were wondering. Like maybe someone at Fido has been getting paid under the table to keep mum. You think?

http://www.businessweek.com/magazine/content/06_42/b4005060.htm?chan=top+news_top+news+index_businessweek+exclusives">Fidelity’sDirtyLittleSecret[Businessweek]