Many started out as sole proprietorships or partnerships. However, in order to grow to their current size, the original owners agreed to a dilution of their ownership in return for money from shareholders.

Most Fortune 500 companies are now run by chief executive officers (CEOs) appointed by board members, who are usually major shareholders.

In recent years, shareholders have been demanding more say in the running of corporations. Alongside this trend, executive pay has come in for criticism. Average CEO pay rose 54% in 1996 to $5,781,300.

Since much of this pay is in the form of purchase options for shares themselves, the existing shareholders' equity is diluted.

Many shareholders feel this is leading to reduced earnings per share and erosion of their ownership and control of the companies.

A Businessweek issue of 04/21/97 has an extensive article covering shares and executive pay. This can be found online at:

http://www.businessweek.com/1997/16/b35231.htm

The Fortune 500 list can be found at:

http://www.pathfinder.com/@@xcdiSgQAgcGmCVr1/fortune/fortune500/