Except if you are an index fund investor.
Reader comment on: Steven Rattner on Income Inequality
in response to reader comment: Except that most of the people don't think the bankers and CEOs truly earn it.
Submitted by Lyle (United States), Jun 9, 2010 16:15
Index fund investors don't have the option of selling unless the stock falls off the index. They are the prototypical buy and hold investors. If we get say on pay and the ability to nominate directors on the corporate proxy, then perhaps stockholders get it better. Clearly comp committees are lapdogs of top managment. and mandatory say on pay is needed. Not the long presentation of option programs that are presented in today's Soviet style corp. democracy. (For that is what it is).
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The Future of Capitalism replies:
I agree this is a significant issue.
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