Congress considers CEO pay
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SCOTT JAGOW: Congress is tackling the issue of CEO pay. Should shareholders get a say in how much the top executives make? Eric Niiler has more on that from Washington.
ERIC NIILER: Astronomical paychecks and golden parachutes for execs have gotten under the skin of Democratic Congressman Barney Frank of Massachusetts. His proposed bill would allow shareholders a non-binding vote on CEO pay.
Frank says such a vote would not limit corporate boards’ ability to set executive compensation. But, he says, it will give shareholders the opportunity to voice their approval or disapproval — which is their right.
BARNEY FRANK: This lack of confidence in shareholders when it comes to CEO compensation greatly contrasts with what we’re told we should impute to shareholders on every other issue.
Some business groups say that shareholders as a group have too many agendas. They argue that corporations are not a democracy and that boards are better suited to determine pay packages.
Frank’s House committee holds hearings on the plan later this week.
In Washington, I’m Eric Niiler for Marketplace.
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