Quite right too. Collectively, shareholders own the company. The idea that they had no right to veto their bonuses was a violation of their property rights.
Eat-the-rich populism is about to sweep the planet, it seems. Does not help that so many banks and Wall Street types keep doing incredibly stupid, short-sighted things to encourage this trend.
RE: Executive Pay Curbs
Who is curbing this? The shareholders or the government?
If it’s a private company, what the heck does the government have to do with it?
Executive pay and competitiveness are not in opposition. This is a false argument.
The trouble with ridiculously large executive compensation is that it is a rigged deal by “incestuous” boards of directors.
Most people imagine boards of directors with the old model of majority shareholders sitting around the table with the president and CEO. But the reality today is that many board members are proxies for other corporations, hirelings that sit on several boards.
Thus they have no personal loyalty to that company or its shareholders, and are more than happy to overcompensate its top executives, because that CEO or president has their own proxy on the board of the first proxies company, who will do the same for them.
So giving the common shareholders more say in executive compensation will do much to actually protect these companies, returning it to real market value.
I have no problem with this....Shareholders should have a say in executive compensation.