Would John McCains Plan to Regulate CEO Pay Be Bad for All Jobs and Stocks?
Steve Forbes: Bad idea, because shareholders shouldn’t have to be micromanaging companies. That’s what they hire management for. If you really want to get a bust on CEO pay, remove poison pills so the shareholders can have a direct impact, and more directors are doing just that. In terms of talent, try going out and hiring a top flight CEO at a cheap price. That’s why equity funds pay 5–10 times more for top rated talent when they take over companies. Victoria Barret, associate editor: It depends on how you define high, and I think that a lot of executives are making way too much money. This isn’t across the board, but we’ve seen really egregious examples of high executive pay, and I think boards which are determining executive pay aren’t doing a good job, so why not let shareholders have a vote? This isn’t about regulation; it’s about shareholders having a vote. This week we found out there’s really no link between pay and performance because you can make money when you’re dead as an
