wh mulls limits on exec pay

Don Quixote

Don Quixote

cancer survivor
Contributor
the wh is considering using the sec to limit exec pay for publicly traded companies

currently, execs are rewarded for high risk taking with no penalties for failure

the wh seeks to change this via opening the way for class action suits by stockholders

sorry, no link for this as the story disappeared from my source before i could copy it
 
It's better than just directly telling companies what they can pay them, and more effective in the long run. Lawsuits are expensive for companies, they'll want to avoid them.
 
The problem I have is the one-sidedness of this.

If the exec takes risks and loses the shareholders will sue. But if the exec takes risks and wins the shareholders will pocket their money and smile.

Investing is risky. That is something that too many people seem to have forgotten.
 
Yes anybody with a salary above a buck fitty, and capital gains over a hundy should face much higher taxes.
 
WinterBorn said:
The problem I have is the one-sidedness of this.

If the exec takes risks and loses the shareholders will sue. But if the exec takes risks and wins the shareholders will pocket their money and smile.

Investing is risky. That is something that too many people seem to have forgotten.
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As it stands the exec takes the risk and loses, he wins regardless, if the exec takes the risk and wins he still wins. It must be good to be a CEO.

The investment risk is still there, you can still lose even if you win a lawsuit later it is doubtful you will see your original principal back.
 
Damocles said:
As it stands the exec takes the risk and loses, he wins regardless, if the exec takes the risk and wins he still wins. It must be good to be a CEO.

The investment risk is still there, you can still lose even if you win a lawsuit later it is doubtful you will see your original principal back.
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Absolutely, the take the big risks for the big pay theory has been proven to be a myth.
 
I think they are limiting the ones on the tarp dole, they should tar and feather those thieve's as well.
 
Topspin said:
I think they are limiting the ones on the tarp dole, they should tar and feather those thieve's as well.
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Don't be so naive, this is the current administration's power GRAB. They won't stop with just the companies who have TARP money. Some banks didn't want the TARP MONEY in the first place as they had not made any sub-prime loans and were legit. Our seemingly corrupt government wouldn't take it back.
 
TuTu Monroe said:
Don't be so naive, this is the current administration's power GRAB. They won't stop with just the companies who have TARP money. Some banks didn't want the TARP MONEY in the first place as they had not made any sub-prime loans and were legit. Our seemingly corrupt government wouldn't take it back.
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Oh yea! The commies are taking over! Ya'll make sure you look under your beds tonight to make sure there's no pinkos hiding underneath it! LOL
 
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