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Putting a lid on CEO pay by empowering shareholders. In the last 3 decades, CEO pay has exploded. A simple way to change incentives is to have directors forfeit their own pay by giving shareholders a “say on pay” vote. This would create a real incentive to rein in CEO pay, which will help to contain pay at the top throughout both the corporate and non-profit sector. The best part is that this can be done by legislation, or shareholders can pressure corporations to adopt this rule on their own.

Submitted by Dean Baker, Co-Director of the Center for Economic and Policy Research in Economy & Jobs Dec. 10, 2014, 1:34 a.m.
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#154
1497 votes
Citation: http://www.cepr.net/index.php/op-eds-&-columns/op-eds-&-columns/a-cure-for-bloated-ceo-pay

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