Last login: Friday, September 9, 2011
Wake Up America!
The cozy relationship between CEOs and Boards of Directors is the #1 reason for the continuing escalation of CEO-to-worker pay ratio. It is very simple. The Board approves the CEO's compensation package increases. The CEO helps select Board members.
Also, ever notice how often the CEO is ALSO President of the Board?? How is that for oversight? Not only is the fox guarding the hens, but the fox helps select the hens placed in his hen house!
The role of shareholders is minimized through the archaic way voting is done to "elect" members of corporate boards. It is really not an election. Shareholders are expected to merely wield a rubber stamp. A slate of candidates is recommended. The shareholders are expected (or you might say compelled) to vote YES to ALL the candidates.
If a shareholder wants to vote against one or more of the candidates, then s/he has to take extra steps to indicate (write in the name of) each candidate s/he wants to vote AGAINST. Why does corporate balloting continue be done in this inane way? ... Because it helps preserve the old boy corporate network which, in turn, continues to ream the average worker.
Combine the rigged Board, with the corporate lobbyists, and the corporate tax havens and loopholes and its easy to see why the ratio of CEO-to-worker pay continues to skyrocket.
September 9, 2011 at 9:55 p.m.
( permalink | suggest removal )