The seer mechanism: A proposal for shareholder voting on reinvestment of corporate cash flow

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Shareholder voting on reinvestment could enhance corporate governance, revealing management's effectiveness early.
The SEER mechanism aims to address conflicts between management and shareholders regarding reinvestment decisions.
Effective board oversight is crucial in preventing inefficient capital allocation and fostering optimal growth.
Strengthening the role of institutional investors may counteract managerial complacency in large corporations.

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The proposal advocates for annual shareholder votes on reinvestment of corporate cash flow, suggesting improved oversight by boards of directors.

Bartley J. Madden (2025) studied this question.

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The proposal advocates for annual shareholder votes on reinvestment of corporate cash flow, suggesting improved oversight by boards of directors.