Executiive Change

Steve Hartnett of Grapevine Texas has started a group to work for change in corporate executive pay structures. Steve is a businessman himself, having been successful in his entrepreneurship for a couple of decades at least.

Just a taste of what you will find at Executive Change:

"Senate Leader Introduces Bill Limiting Deductible Compensation
Issue: Executive/Deferred Compensation

Date: May 11, 2009

Action Taken: On May 7, the Senate Democrats’ second-in-command, Senator Richard Durbin (D-IL), introduced S.1007--the Excessive Pay Capped Deduction Act of 2009-- a bill that would impose a limit on the deductibility of compensation paid to any company employee. At the same time, he also introduced S.1006, a bill that would require a supermajority of publicly traded company shareholders to approve compensation payable to any company employees if that compensation package were to be in excess of the limit. The limit is 100 times the company’s average compensation."

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This is not a partisan issue. I am a Conservative, but I believe that minority stock holders are getting a raw deal from the companies they hold stock in when these companies throw money hand over fist into executive compensation packages, especially when these companies are losing value and under performing, or the ones who have taken the Porkulus bailout and then paid millions in bonuses to executives who have not earned them.

This in turn is bad for the economy because the executives can ignore what is good for stockholders while making gross amounts of compensation in the form of inflated salaries, stock options, and other compensation such as enough retirement money to fund retirement for hundreds if not thousands of employees.

Click on the title to this post to go to Steve's blog, and if you agree with what is being proposed there, join the effort.