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Shareholders strike back

September 23, 2009

Well… sort of.

Microsoft lets shareholders vote on executive pay.

As a small-time MS shareholder, I would have preferred it to say, “Shareholders to vote on MS executive pay.”

Oh well, a step in the right direction nevertheless.

3 Comments leave one →
  1. September 23, 2009 10:38 pm

    yea, a step towards the right direction. sure will hv some hiccups here n there in the beginning. but its better than letting the ‘board’ decides…and not majority of the shareholders.

    Yeah, America’s finally waking up to it after shareholders realized the senior management of their firms were raiding the pantry for years, haha.

  2. September 25, 2009 8:34 am

    The book I’m currently reading (yea…5th month…i’m really a slow reader) …”Enough” …actually mentioned that the salary of CEOs in States is based on their peers. So if company A’s CEO has the lousiest salary among the CEOs in the country, company A’s board will feel ashamed and increase the CEO’s salary. The process will repeat itself when other companies figure they should not have their own CEO getting the worst pay.

    So in the end, the salary for CEOs keep going up due to such comparison, and not due to the company’s actual performance.

    That’s using peer pressure to keep up with the Joneses. A high-schoolish but gripping way to run things if the mob dictates how you attract management talent. One side says you must let market forces (= the mob) determine salaries. Another says it should be regulated, otherwise the sector prices itself out of the game and money flees to Asia, etc. So which side do you think is reasonable?

  3. September 26, 2009 1:04 am

    The first one. So that the money will really flee to Asia 😛

    I beat you to it. I’m already in Asia, lol. 😀

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