Yee-hah!
So the capitalism meltdown is all the fault of financial market cowboys, and making boards responsible for calculating executive pay is going to fix it? Nonsense. Boards are renowned throughout the Wall Street Journal for making inane appointment decisions, including Byzantine remuneration strategies, seemingly designed to ensure CEO non-performance, and all well hidden from the public until the massive pay-out at the premature end of the idiot-king’s tenure. Even when savvy shareholders see these things and understand them, their self-interest leads them to overlook rather than object. Boards and shareholders alike are driven by share price. Some may want to look at price-earnings ratios, others are more interested in pure activity. While day traders may churn through stocks in a way only somewhat detrimental to markets, hedge fund dealers are far more destructive, as are executives themselves. And all those ponzi-schemers aren’t helping, either. Who brought down Bearings? And how many other multi-billion dollar schemers have you been hearing about for the last ten years? The free hand of the market is a hand at our necks, and only effective, comprehensive regulation can make it a helping hand instead. The system doesn’t work. It hasn’t worked for twenty years, at least.