LUV Shareholders - Careful what you ask for…

May 30th, 2009 | by caprice |

If you invest in mutual funds you might not have the opportunity to view individual stock annual reports. The reports and voting agendas are getting much more interesting these days. Shareholder initiatives are showing up in more frequency; they include requirements for things like water sustainability reports and you guessed it.. health care reform.

Southwest Airlines Co. shareholders requested a vote for the adoption of Principles for Health Care Reform. I think everyone in this country is interested in seeing improvements in our health care system, however these principles did not make sense to me. Sure, I would like to see universal coverage (but not mandated) that is continuous and affordable, sustainable and enhances the well being of people. But putting something so ambiguous in a proxy vote seems like risky business. Who knows what the intepretation of those principles would mean and what is the company supposed to do about it? Adoption of these principles could affect the companie’s ability to manage effectively or even comply with future laws down the road. Bottom line, health care reform is a larger issue - tax laws and public policy changes need to be well thought out.

This blog note is not advocating or dissuading ownership of stock, LUV or otherwise, in any way.