Learning the Law

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Learn the Law and its Functionalities in the United States of America!

There is a bill in the progress before the House of Representatives that is trying to put the issue of the pay and compensation package that executives of publicly traded companies receive in front of stockholders.

This bill is actually expected to pass through the house successfully; however, it is unclear how well the Senate will receive it. Is this bill the right direction for a modern America, or do we need to consider more intimately the economic implications of such a decision?

The White House has already formally registered its opposition to such a plan, however the backers are unconcerned. Many feel that the compensation plans of the major officers of the publicly traded companies should be tied to the performance of the company and the officers themselves, and not to the figures that the officers wish to receive.

This bill if passed could place an enormous amount of power into the hands of stockholders who are upset with the way several companies have behaved lately, with declining profits and horrible business practices while the officers of the companies have picked up large compensation packages that include their salary, benefits, and stock options.

Each officer can end up with hundreds if not thousands in profits even while the company is performing badly, which stockholders believe is an inequitable outcome.

Many have wondered if the officers in charge of these companies would tighten the belts on spending if their own pay was tied to their performance rather than their wishes, and with numerous companies falling short of profits with huge pay packages going out, and raises occurring almost yearly many investors have started complaining loudly. Learn more inside...