What does it mean to get compensation right? And why does it matter so much? Getting it right is called "fair and reasonable" by the IRS. It's what the law requires, it's what any CEO wants, and it's what any donor and member of the public expects.
By sixteen I could have been the poster child for a crisis nursery, domestic violence shelter, and rape crisis center. On the positive side, however, I grew up in a neighborhood with friends from many countries, religions, and races.
If companies and their boards of directors truly commit to a corporate global vision of justice, businesses can make greater profits than they ever imagined and people throughout the world would have food on their tables and live in peace.
Hopefully the next time a bank commits a crime, the guys who fell asleep at the wheel won't have their defense paid for out of your retirement account. We'll only see improvements in banks when directors are liable.
Boards are biased, too like-minded, made up of friends who are typically cronies uncomfortable with conflict. Worse still, in most of our leading corporations today, the positions of Chairman and CEO are held by the same person.
We may say that functions are moved to the "private sector," but they are almost invariably taken over by corporations. It is not truly a "private sector" to which they are moved, but the corporate sector.
The governance operating system is based on an underlying assumption that employees act in their self-interest. This operating system worked perfectly fine for decades, until leaders began calling on employees for other things besides productivity.
Proxy access comes down to this: If you give long-term shareholders (meaning those who own 3% of the shares for three years) easy access to board nominations, they will finally be able to perform their monitoring function adequately.
Several years back, I ran a large team building event for a company on Wall Street. The men and women vibrated with intelligence and sparkled with charisma. But something about that day has recently come back to haunt me.