Evelyn Y. Davis has raised some important issues but she would not have persisted as long as she has if she was not so convenient for corporate executives. She makes it easy for them to marginalize all shareholder activists as colorful kooks.

But the journey begun by the Gilberts will be completed not by Evelyn Y. Davis but by the large institutional investors like the pension fund for the members of AFSCME and CalPERS. These investors are behind highly credible and effective shareholder initiatives on "say on pay" and withholding approval for directors who approve outrageous pay packages. Home Depot would not have gone from one of the worst pay packages in history to one of the best without the pressure of the significant, principled, persistent investors who are the best prospect for a genuine market response and the best guarantee of efficient markets.

There's a lot of pressure for "say on pay" and legislation passed the House with overwhelming support. But I think the more effective approach will come from majorty vote requirements, giving shareholders the ability to jettison negigent or corrupt directors.