4 ms·
That's the convenient dodge. The source of the problem whereby the trustees of publically owned companies both determine and benefit from high salaries is plai
by CPLX 11y ago
That's the convenient dodge.
The source of the problem whereby the trustees of publically owned companies both determine and benefit from high salaries is plainly obvious as a principal-agent problem.
- ubernostrum 11y agoThere's a reason why in the US, the federal Constitution contains explicit clauses to stop things like Congress voting themselves an unaccountable salary increase (it can't take effect for any individual member until after their next election) or creating/giving raises to other government positions they'll switch into (after creating or raising the pay of a position, they become ineligible to hold it until after their term in Congress expires -- which led to some interesting debates over whether it's legal to reduce a previously-raised salary to its original level in order to appoint a current member of Congress to it).