Book Description

Since the beginning of the most recent economic downturn, there has been an increased level of attention on the pay that executives at publicly traded companies have received. Numerous reforms, including the Dodd-Frank Act and the Troubled Asset Relief Program (TARP), imposed transient, although included some permanent, limitations on executive compensation packages. However, given the importance of executive compensation reform to both corporate governance and economic/social justice initiatives, it is imperative that the federal legislature do more.This article will explore some of the patchwork of regulations that the federal government has enacted and the methods that the states use to control executive compensation. After examining the failure of the states to curb excessive compensation, and noting the problems that will prevent them from ever doing so, the author asserts that comprehensive federal regulation is the only way to ensure that this very important challenge is tackled. By exploring some potential ways that Congress could do so, this article will show the practical social and legal benefits of wholesale federal regulation.