I have three reasons for which I find the current push to force CEO compensation reform upon the Big 3 and financial companies that are currently being bailed out an incorrect path to follow.
1)Legislating the solution will meet considerable resistance, which will include legal challenges.
2)Many CEOs will choose to let their company crash out of spite, rather than choose to reduce their own compensation, which fixes nothing.
3)We will only be able to apply it to the small number of corporate CEOs that are part of companies that are currently in trouble. And this is something that needs to be applied everywhere.
There is another solution, which was in place in the period prior to Reagan, that will not only give a sense of social justice, but it will also make American companies more robust and capable of weathering economic downturns.
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