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Shareholder democracy and executive compensation



The WSJ discusses moves by shareholder activists to get firms to adopt requirements that directors be elected by majority vote. Basically these are moves by unions, and they have a lot to do with using executive compensation to gain union leverage in corporate governance. Proposed new rules on disclosure of executive compensation would help these groups. Can this be good for ordinary shareholders? I don't think so.

 

 


Rafael Mangual
Project Manager,
Legal Policy
rmangual@manhattan-institute.org

Katherine Lazarski
Manhattan Institute
klazarski@manhattan-institute.org

 

Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.