Government Control Over Compensation?

The UK and U.S. are wrestling with how involved the national government should be in policing some executive compensation. The practicality of shareholder control is called into question because of the potential of business decisions being marginalized. Too often, management considers shareholder directives to be advisory. The U.S. financial institution compensation bill allows regulators to obtain incentive program information and rule on whether there is a risk to the financial system's stability. This still leaves the question: Who best rules on an individual's pay? Should shareholders or governments determine the size and structure of executive compensation?

The preceding article is a "sneak peek" from Networking & Communications, a newsletter from GlobalSpec. To stay up-to-date and informed on industry trends, products, and technologies, subscribe to Networking & Communications today.