Washington, D.C., Jan. 25, 2011 — The Securities and Exchange Commission today adopted rules concerning shareholder approval of executive compensation and "golden parachute" compensation arrangements as required under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
http://www.sec.gov/news/press/2011/2011-25.htm
I am pretty speechless right now
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FUCKING. AWESOME.
Don't ever forget that the shareholders are ultimately the executive's employer.
It's about time.
It's non-binding, but this is probably a good idea. Ironically, it may become an excuse to increase bonuses.
I think part of the reason the country has become more economically stratified than it was in the '50s-'70s was tax cuts. It didn't make sense to pay a CEO $15 million if $13.5 million was going to go to federal taxes back in the '50s. So for better or for worse, if you want to cut executive pay, you have to raise taxes. Frankly, I don't think paying CEOs $10 million/year is a bad thing- it would just be nice if we could fire them if we paid them $10 million to underperform against other companies and lose money.
Eliminating the golden parachutes would make corporate raiding easier. It will be 80's all over again.
Why not bring it back to the '70s and make mergers/takeovers a lot tougher? :D
What is it about '70s that you especially like?
The fact that the country's financial institutions were able to handle tough financial times with a lot more grace.
Bring back 10% capital requirements, make mergers that involve a lot of debt or are in non-competitive industries more difficult, and make sure we don't have another financial crisis ala the S&Ls or the mortgage meltdown.
How was it more graceful? If I remember reading correctly, the recession in the 70's was no walk in a park - 13% inflation, unemployment at 9%, making a misery index of 22%, plus up to 22% prime interest rates, nevermind the gas rationing.
Yes, but did any major financial instutions go bankrupt?
Back then investment banks were still partnerships and reputation still meant something. Case in point: Rohatyn walking away from banking to save NYC when the city was facing bankruptcy. The assclowns at the top today don't give a shit about anything but their bonuses, private planes, and houses in the Hamptons.
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