The two—class shareholding system at the New York Times Company, which ensconces the Sulzberger clan in control of the board of directors despite owning less than 10% of the equity, is driving down the value of the company. Unable to evict the incompetent manager and hard left ideologue scion Pinch Sulzberger from his post as publisher and chief executive, class A shareholders are protesting the only way the can, by bailing out of their holdings, thereby driving down the stock price. The Wall Street Journal reports ($link) on the move away from two—class shareholding schemes in Brazil: Seeking to boost its stock price through better corporate governance, Brazil's biggest telecommunications company, Tele Norte Leste Participações SA, known as Telemar, announced a plan to eliminate a two—class shareholder structure that concentrates power in the hands of a small group of investors. The move follows similar reorganizations by aircraft maker Empresa Brasileira de...(Read Full Post)