CEO Salaries Cry Out for Reform

From Sea to Shining Sea ^ | 1/04/06 | Purple Mountains

[PurpleMountains]

One of the things that makes me a moderate conservative rather than an extreme-right conservative is that I have never forgotten something my business-law college professor told us – that when government passes a new law or regulation that places limits on what businessmen or markets can do, it’s always because some people acted to excess and spoiled everything. Although the situation has changed slightly for the better, this kind of condition clearly exists in the area of top-executive pay (that of CEOs), and in the aftermath of Enron, WorldCom, Tyco and Global Crossing, cries out for some action.

[coconutt2000]

Tax reform has an interesting side effect in the way people invest.

The problem can't be solved by government regulation or laws. Creative board members and top management can always find a way around any government regulation.

So, the real solution is to find a way to encourage stock holders to take a greater interest in how the companies are managed and their executives compensated. Tax reform seems to have that effect. IMHO

[satchmodog9]

oof

[PurpleMountains]

I agree completely with what you say and find myself taking a position at odds with what I normally think about an issue like this. The problem is that this situation has been allowed to fester too long, and, unless corrected by moderate means, will be corrected by extreme means.