The Remuneration Disclosure Monster

It is very seldom that publishing compensation accomplishes much for shareholders. No CEO looks at a proxy statement and comes away saying, ‘I should be paid less.' American shareholders are paying a significant price because they get to look at that proxy statement each year. That snippet from Warren Buffett in the question and answer session at Berkshire Hathaway’s annual general meeting this year hits on a crucial point. Has all of this remuneration disclosure actually helped shareholders? Like Buffett, I think not. Exective pay continues to skyrocket and the ratio of CEO pay to average workers pay is now 331-1...

It is very seldom that publishing compensation accomplishes much for shareholders. No CEO looks at a proxy statement and comes away saying, ‘I should be paid less.' American shareholders are paying a significant price because they get to look at that proxy statement each year.

That snippet from Warren Buffett in the question and answer session at Berkshire Hathaway’s annual general meeting this year hits on a crucial point. Has all of this remuneration disclosure actually helped shareholders?

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