Government must stop meddling and leave pay decisions to shareholders
Elaine argues that demands for government intervention to limit executive pay are misguided. The WPP vote against Sir Martin Sorrell’s pay and other AGMs this spring has shown that shareholders can act – corporate governance is their responsibility. The only way that governments can improve corporate governance is by removing obstacles to shareholder action.
You can read the article in full on CityAM here.
Summary
Dr Elaine Sternberg writes in City AM on her latest report for the Adam Smith Institute. She argues that government are wrong to try to limit executive pay and should focus on maximising shareholder's freedom to govern their own corporations in their own ways.