Quantum Windbag
Gold Member
- May 9, 2010
- 58,308
- 5,100
We'd need a bill or amendment to the current laws around stock market, share holder regulations. The law would give the owner's of the company, possibly all of the owners, the right to vote on executive compensation plans.Any ideas on how this could be done?
Additionally, we could investigate and prosecute executives that collude with other executives to give themselves massive bonuses at the expense of the owner's profits. Any evidence that this is being done cross company should be seen as a monopoly on executive pay rates. Typically the way it works is the executives decide how much to pay themselves, presumably based in part on how much the other executives are paying themselves. Nutz. Board room of execs sitting around deciding they should all get 50% of what the CEO gets... hey let's give the CEO massive bonus. CEO scratches their back giving them a massive bonus. Nutz.
In my view, the biggest problem with corporate law is limited liability. It's the root cause of most corporate excesses, including outrageous executive compensation.
How does limiting the liability of investors, aka stockholders, who have no part in day to day operations of the corporation, lead to corporate excesses?