I don't regard that as a particularly viable option: interest rates are low so the natural alternative investment isn't worthwhile and the problem is pervasive so it's true in almost all companies large enough to be listed on a stock exchange.
I'm lucky in that I can invest money in my own business, and afford to take riskier bets on alternative investments, but that isn't relevant for your average investor.
Until capital gain return to their appropriate position relative to dividends (and sane tax law would help here), the shareholder beatings at the hands of the c-suite and boards will continue.
Meaning there are some you can reward with your investment.
> shareholder beatings
I've done reasonably well simply investing in SPY and holding it long term. Badly managed companies get dropped from SPY because their cap evaporates, and well managed companies get on it and stay on it.
SPY is extremely relevant to the average investor, and even more so to the below average investor.
I find is extremely difficult to determine which large companies are self-dealing, since executive and board compensation is not split out in most financial statements. (I can't help but think that this is by design.) So, broadly, I assume all of them are engaged in it unless proven otherwise, which no companies I'm aware of bother to do.
Unless I found some kind of miracle jackpot with the stock reports I've read so far, 100% of them have a section purely devoted to discussing executive/board compensation that is extremely detailed. I know those thick books you get in the mail are daunting, but they do contain a lot of info if you're willing to take the time to read them.
I hate to belabor the obvious, but that means there are companies that disclose this information, and you can choose (or not) to reward them with your investment.
So, I do do that, by investing in equity (as much as I do) with high dividends, since that is orders of magnitude easier to dig up than to find the few companies that are both interesting as a business and also have sufficiently transparent quarterly statements. Time is valuable, after all.
However, to get back to the original point, the current environment of board and c-suite self-dealing will not change until many, many more people invest and think the way I do. For that to happen, the current bias towards capital gains, which your generation grew up on, will need to be wiped out conclusively.
I'm lucky in that I can invest money in my own business, and afford to take riskier bets on alternative investments, but that isn't relevant for your average investor.
Until capital gain return to their appropriate position relative to dividends (and sane tax law would help here), the shareholder beatings at the hands of the c-suite and boards will continue.