Karla's Musings

Executive Pay

I’m listening to the protesters complain about CEO pay and wondering —  where’s the outrage over outrageous professional athlete and movie star salaries.    I wonder if the protestors know that as of last year, owners of corporations (stockholders) have the right via the so-called “say on pay” provision of the Dodd-Frank bill to have their voices heard regarding CEO pay of public held corporations. Shareholders of publicly traded companies get to vote on executive pay.  Currently, there is additional legislation in the pipe line to have more control over and limit the amount of CEO pay.   Next in line will be professional athletes and movie stars salaries and maybe even writers of fiction books.  Really? why should the person who makes up a story about Harry Potter make 1,000 times more money than me?  I can make up stories and tell lies too.    It’s only fair that she share her money with me.  Tongue in cheek.  Get my point?   We have provisions to direct and manage CEO pay through corporation Board of Directors.  The market place will expose atrocities and mistakes and eventually will self-correct.  I don’t think we want another Federal Board of Bureaucrats to determine CEO pay.  When Senator, Barack Obama, proposed a bill to cap and control CEO pay.  The Frank Dodd bill did not go that far.  But the protesters want it, the Democrats want it and there is pending legislation in the wings waiting for the right (or should I say left) legislative mix to pass it.    Having voiced my opposition to government regulation, I absolutely do agree that some CEO salaries are obscene and not necessary.  Board of Directors:  do your job — or government will do it for you.