Friday, November 11, 2005

Shareholder approved contracts

Saw this at kos.
Bill would let shareholders approve CEO pay
By Greg Farrell, USA TODAY

In response to public revulsion over the astronomical pay packages awarded to some CEOs, a House Democrat introduced legislation Thursday that would force companies to let their shareholders vote on executive compensation.

Citing statistics showing that CEO salaries rise dramatically even when a company performs poorly, Rep. Barney Frank, D-Mass., said more disclosure of executive compensation was necessary.

"This bill does not dictate pay levels for corporations," he said. "It sets rules for public corporations about how to go about things."

Frank's proposed legislation calls for large public corporations to include detailed summaries of CEO pay contracts in the annual proxy statements sent to shareholders. Shareholders would then have to approve those contracts.
That's a great idea. What's going on here? Today's democrats actually starting to think like democrats from a bygone era? Will wonders never cease?

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