It's time to let you in on a dirty little secret: You may not own the stock you own. That's right, if you invest with a brokerage firm, the shares you bought are almost certainly not held in your name. Technically, they're held in the name of the Wall Street firm you do business with, hence the term "street name."
No, you haven't been robbed. Ultimately, the decision to hold shares on the books under a different name doesn't affect the economic ramifications for you. You¿re listed as the "beneficial owner," even though the firm is the official owner of the shares. But, you are giving up some rights, and investors concerned about good corporate governance might want to get that stock back in their own names.
Here's the problem: If your stock is technically owned by, say, Merrill Lynch, then Merrill Lynch gets to do things with it that might work against your wishes. Take short selling. Investors who want to sell shares short need to first borrow those shares. The lenders are often the big Wall Street firms that are handing out Street-name shares. So, if you feel that a company you own is a victim of aggressive short selling, chances are your own shares are being used to fuel the shorting.
Also, your brokerage firm can cast ballots on some corporate matters affecting a company without getting your input. Technically, this can only happen in votes considered ¿routine¿ by securities regulators. But, there's a big catch: some big events, like board elections, are considered "routine" under law.
The good news is that you can easily fix the Street name problem: Just request that your brokerage firm makes you the listed owner of the shares. If they refuse, find a new firm.
HOUSTON, Jul 10, 2008 (PrimeNewswire via COMTEX) ----SYSCO Corporation (NYSE:SYY), North America's largest foodservice marketer and distributor, announced today that Evelyn J. Pulliam has been named vice president, human resources and that David L. Valentine has been named vice president and assistant controller. Ms. Pulliam, currently corporate counsel, employment law, will assume her new role on July 30, 2008. Mr. Valentine, currently assistant controller, will assume his new responsibilities immediately.
Ms. Pulliam, 45, began her legal career in the oil and gas industry in 1988, after serving a one-year term as a briefing attorney for the Texas Court of Appeals, 6th Judicial District, and spent time in the medical device industry before joining SYSCO in 2001 and ultimately becoming senior director and corporate counsel, employment law. In her new position, Ms. Pulliam will be responsible for leading the company's human resource function, staffing, compensation, work climate assessment, and compliance for SYSCO's corporate office, as well as providing support as needed to SYSCO's 177 distribution locations and their associates.
Ms. Pulliam is a native of Kalamazoo, MI. She is a 1984 graduate of Southern Methodist University's Cox School of Business with a bachelor degree in business administration, and she received her law degree from the University of Texas in 1987. Ms. Pulliam and her two children reside in Houston.
Mr. Valentine, 50, joined SYSCO in 1986 as an auditor for the company's operations review department and was promoted two years later to controller of the company's Dallas subsidiary. In 1992, he was promoted to vice president of finance at the Norman, OK subsidiary, later moving to the Seattle subsidiary in the same capacity, until appointment to his most recent position in February 2004. Mr. Valentine is responsible for financial oversight of SYSCO's Baugh Supply Chain Cooperative -- the company's five regional cooperatives -- as well as financial oversight for the company's logistics organizations and its supplies and equipment distribution centers. His additional responsibilities will include oversight of the organization's military sales support function and major account sales administration organization.
Mr. Valentine was born in Kansas City, KS, and raised in Michigan City, IN. He is a certified public accountant and 1980 graduate of Valparaiso University, where he earned a bachelor of science degree in business administration. He and his three children reside in Katy, TX.
SYSCO is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of products also includes equipment and supplies for the foodservice and hospitality industries. For the fiscal year 2007 that ended June 30, 2007, the company generated more than $35 billion in sales.
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