Reuters reports:
Massachusetts Democratic Rep. Barney Frank told Reuters on Thursday he hopes to pass a bill by mid-2007 to give shareholders more say in setting corporate executive pay, a contentious topic for U.S. businesses. "We need to find some way to legislate greater shareholder involvement in setting CEO salaries," Frank said at the annual Reuters Regulation Summit in Washington.
One assumes that Frank is carrying water for unions, for whom shareholder voting on CEO salary is a major policy goal (as Larry Ribstein has explained). Whether or not that's the case, however, it's a very bad idea. Why? See the discussion in the last section of my paper Executive Compensation: Who Decides?
