Tuesday, April 17, 2012

A DODD-FRANK WEAKNESS

Instead of making publicly held companies hold a non-binding shareholder vote on executive compensation, Dodd-Frank should have made it binding.  I am glad that the Citibank owners voted down the proposed packages but I wonder if that will make any real difference in MOTU behavior.  After all, they can play with accounting numbers almost to their hearts' content and most shareholders would be none the wiser.

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