Beginning this year, exec compensation schemes will be subject to shareholder advisory votes for large public companies.
Will the shareholders vote? Will they just be shooting us all in the foot? Tying compensation with corporate stock performance -- the source of most excessive compensation, i.e., stock options -- was supposed to help investors. To encourage management to do whatever was necessary to increase share price and make those investors rich.
Just, it turned out, making investors rich over the short term isn't always great for the company in the long term.
So can we trust this babysitter?
Is there another, better, way to incentivize corporate management to behave better? Hopefully say-on-pay initiatives will open the door for further exploration.
