"The Coming Crackdown on CEO's " (Barney Frank has Good Plans)

[KoKo]

When Democrats take control of Congress in January, Rep. Barney Frank will set the agenda on policies that affect public companies. He's pushing for extraordinary reforms and supersized shareholder power -- including say over executive pay.
By Michael Brush

Democrats want to bring democracy to the boardroom. And -- more bad news for CEOs -- to the corner office.

After six years in which Republicans have run the show in Washington -- and during which CEO salaries have climbed 209% -- Democrats in Congress see executive-compensation reform as one way of flexing their populist muscles. Their goal is to give shareholders more say in how corporations are run and, more specifically, how top executives are paid.

Spearheading those efforts will be Rep. Barney Frank of Massachusetts. In January, when his party once again takes control of the House and Senate, he'll take over as chairman of the House Committee on Financial Services, a key panel for setting policies that affect public companies, the stock markets and investors.

In what would be a major power shift inside corporations, Frank hopes to give shareholders an absolute right to reject bloated compensation -- everything from salaries, bonuses, options and huge pensions to private use of the corporate jet. Frank says change is sorely needed because boards are too often stacked with management cronies who fail at their assigned task of looking out for shareholders.

"Boards of directors cannot be relied on because too many are themselves CEOs or they have been hand-picked by CEOs," says Frank, who spoke with me earlier this week. "Directors can do some things well. But being a check on CEOs is not one of them."
Extraordinary reforms

Frank's wish list goes far beyond whatever reformers had thought possible. Shareholder activists have seen reducing the size of bloated executive retirement packages as their best hope for change. Frank wants that, but also much more.


http://articles.moneycentral.msn.com/Investing/CompanyFocus/TheComingCrackdownOnCEOs.aspx?page=all

[toadaway]

1. Excellent and reasonable ideas. nt

nt

[Union Thug]

2. Make white collar crime a capital offense, punishable by

death...

And implement.

Done and done.

Hell, I'm against the death penalty, but since we've got it, let's put it to good use.

[aquart]

3. I love Barney Frank.

Love, love, love him.

I had no idea he was concerned with the wishes of my heart.

[independentpiney]

4. He's always been a very good man.

[KSU Wildcat]

5. A corporation is a democracy.

It is a pure democracy. In essence the stockholders hire the ceo via the board of directors. True, a lot of the board are ceo's from other companies but they are voted in by the shareholders. There is one vote per share of stock. The stockholder with the most shares (the ones who can gain or lose the most) naturally have the most votes.

If a person is going to buy shares in a company they need to do their homework beforehand so they know what they are getting into. If they do not like the conditions, they better not buy.

The smart thing for someone who does not have the resources to investigate would be better off buying a mutual fund which does have professionals to do the investigating. Another advantage of a mutual fund is that the fund has many companies that it invests in so you spread the risk. In other words you do not have all of your eggs in one basket.

[Vanje]

7. Workers/employees have no voice in your bogus "democracy"

The confederate South was also democratic. That diidnt do the slaves any good at all.

[KSU Wildcat]

8. Of coarse the workers/employees have no voice.

They are not the owners. You hire a plumber to fix your plumbing in your house, does he have a say in how you run your house??..Of coarse not...he is a paid employee and that is it. No disrespect for him but his business is to fix the plumbing and that is it.

The same goes for the Workers/employees of a corporation.

[Vanje]

9. What kind of democracy izzat?????

You said corporation is perfect example of democracy.
How can that be?
Where people with money invested, have a say, but people whose LIVES and futures are invested have no say?
In what kind of democracy does one get influence proportional to how much he spends?
Thats not a democracy, thats a feudal system, and it only appears to function until the peasants revolt.

[KSU Wildcat]

10. The US has millions of

immigrants working here. The immigrants are not citizens. Should the immigrants be able to vote in our elections. Absolutely not. They can always take steps to become citizens and then they will have the right to vote in our elections. The same goes for a corporation.

You would never let your plumber, carpet cleaner, or other worker that you have for your home have a say on how you run your household. Why??? Because they are not a member of your household.

The same goes for workers in a corporation. They have no say in the business decisions of the corporation or the running of your house. They can always run their house or business any way they see fit but not my house or business.

Democracies exist for the citizens (also owners of businesses) and not for the immigrants or other outsiders. The immigrants or workers always have the right to go elsewhere if they do not like the conditions.

I am sure of this that you are not going to let anyone that works at your home have a say on how you run your home.

[Vanje]

11. We were talking about models of democracy

My home is not a democracy. Its a monarchy.

Also, heres a clue : Some immigrants really are citizens.

[cascadiance]

12. Democracy is one man/woman one vote, not one dollar one vote...

Everyone here NEEDS to understand that or we're not even out of the Democracy gates.

[Vidar]

13. Only in the sense that democracy is too often "for sale".

[ms liberty]

6. K&R for Barney Frank - he's one of my favorites n/t