4 ms·
What on earth does this have to do with the SEC's charge of fighting fraud any other illegalities?
by thrill 11y ago
What on earth does this have to do with the SEC's charge of fighting fraud any other illegalities?
- _delirium 11y agoBesides fighting fraud, the SEC's other main purpose is to mediate the shareholder/company relationship, ensuring that people who own a share of a company have their ownership rights respected, and setting procedures for what information they're entitled to, and what mechanisms they can use to control the company's decision-making. One long-running dispute has been over what mechanisms shareholders should have to exert oversight over the pay structure of the companies they own. There are bunch of proposals, from tweaks to the mandatory reporting rules (what this seems to be), all the way to allowing shareholders a direct vote on executive pay (the so-called "say on pay" [1]). Though you could certainly argue that this particular rule isn't a very effective means for shareholders to get control over executive pay; at best it seems like it will give them an occasionally-useful PR tool to pressure boards into restraining executive pay. [1] https://en.wikipedia.org/wiki/Say_on_pay https://en.wikipedia.org/wiki/Say_on_pay
- jsprogrammer 11y agoA massive discrepancy between the highest paid and lowest paid individuals in an organization may point to: money laundering, embezzlement, kickbacks, fraud, abuse, negligence, etc.