Here's a hot potato for you!!
With the Enron and other scandals suggesting extreme unethical, if not illegal, behavior of senior officers in large corporations making the news regularly; the issue of corporate compensation is being raised again.
My opinion is that corporation compensation is based more on what the individual can get and not what the individual is worth. With a bidding war between companies for the "better" executives and with many boards of directors, who are responsible for determining corporate compensation, including officers of the company and having the CEO as chairman; there has been no effective oversight in the management of corporate compensation.
Only recently, with the value of their portfolios continuing to fall, have independent groups of share holders even challenged the "status quo". As a knee jerk reaction in order to gain political advantage, new laws are being proposed, which may in the long term either generate more problems than they fix or just not be enforced after the publicity cools off. Other politicians, who have benefitted from significant contibutions from these companies advocate just ignoring the problem and it will go away.
I don't have a panacea, but I do believe that some corrective action is required with independent oversight and control of the process.
What do you think?