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What sort of regulation do you propose?

• twblalock 10y ago
  This is the problem. It's very unlikely that regulation will improve the matter. If executive pay really is an outcome of market supply and demand, regulation will act as a price ceiling, which will reduce the quality and quantity of executives available. In addition to the well known fact that price ceilings create shortages, these executives don't need to work for a living. Mayer was already set for life before joining Yahoo. Why would they work for less money than they currently ask for, especially if they really are worth it according to market demand? If executive pay is an outcome of nepotism and corruption, and people on boards helping out their buddies, then they will simply continue to do so. If pay is capped, they will find another way to reward their friends. This cannot be prevented through regulation. It can only be stopped when the shareholders decide that they've had enough of it and appoint board members who behave differently.