Congress is thinking of restricting the freedom of corporate boards to set the compensation of officers and directors without interference from shareholders. The Securities & Exchange Commission has generally barred shareholder resolutions on pay, ruling they would put the stockholders in the position of managing the "ordinary business" of the company, a job that belongs to management and directors. Staffers say Senator Carl M. Levin (D-Mich.) was angered after learning of the SEC prohibition in BUSINESS WEEK's May 8 Cover Story on executive pay and decided to act.
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