Next, The Sec Should Zero In On Proxies

The Securities & Exchange Commission on Feb. 13 gave shareholders the right to question executive compensation through proxy resolutions. Even better, it proposed rules requiring that pay packages be disclosed in a more meaningful way. These admirable moves should please investors--as well as ordinary Americans--galled by the escalating compensation pocketed by U.S. corporate executives, no matter their performance. With one job well done, the sec should now move on to another: It should reform the proxy system to make managers more accountable to shareholders and shareholders more effective owners.

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