Until shareholders have a real say it does not make sense.
Reader comment on: Citigroup and the SEC
Submitted by Lyle (United States), Aug 17, 2010 17:07
If we get say on pay, and the ability to nominate directors on the corp proxy statement then you are punishing shareholders for something they really can't fix. In particular until recently it took just one vote to be elected to a board if you did not have opposition, which there never was on the corp proxy. All one could do is vote for or withhold vote. Only once shareholders have an option other than to sell, which is not really an option if you are an investor who wants to hold the fortune 500 basket for example, don't punish them. If shareholders have a say, then they did have something to do with the case. Actually I would say lets revoke the non qualified pensions of the personel, so they are limited to $125k/year of pension if they misbehave. (Note most companies have a non ERISA (PBGC)pension to make up for comph\ensation above the ERISA limit that otherwise uses the same formula as the ERISA pension) This did catch up with a lot of GM execs as the supplemental plan is not ensured against corp bankruptcy.
Note: Comments are moderated by the editor and are subject to editing.
Other reader comments on this item
Comment on this item