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View Diary: The only real political option is to BREAK the Back of the RW's Revolution (41 comments)

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  •  Go after managerial corporations. (5+ / 0-)

    Managerial corporations (= large companies with boards working for a widely-distributed pool of shareholders) are the root of the problem. The Regan mythology exists to distract people from figuring out where their interests really lie. Regan himself was the mangerial corporation's biggest friend.

    One example for clarity. Wayne Teabilly, a low information voter, has a 401K pension plan and he thinks that America should be "run like a business" because the CEO class are the best and the brightest. They're not "politicians." But fat CEO compensation packages, peer-determined and routinely passed by controlling shareholders at various annual meetings, mean less money for Wayne. Worse, since much executive compensation comes in the form of stock options, the board will not be motivated to build up the underlying value of the company (e.g., invest in new machine tools to improve production capacity) so much as to drive up share prices on or around prospective executive retirements. So Wayne's retirement portfolio ends up with a bunch of hollowed-out companies servicing big debts.

    One reform: allow minority shareholders (e.g., pension funds) a greater say in determining executive compensation and creating sustainable, long-term shareholder returns.

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