Fairness and Justice

and will only be making recommendations once all feedback is consolidated. I believe that ‘say-on-pay' advisory shareholder vote, will lead to improved transparency and accountability in executive remuneration matters and bring improvements in the alignment of remuneration and performance. The new law won't necessarily put an end to fat-cat pay, it should go some way towards raising the accountability of many executives who have been paid handsomely despite shoddy performance that has harmed, rather than helped, increases in the value of their companies for shareholders.

Are there issues of Fairness and Justice:

A typical CEO will argue that a large compensation package is justified because he

creates a large amount of value for the firm. I believe that when a corporation wins, it is due to the hard work of thousands of people, each of them creates value for the firm. A company should recognize that a CEO does not create all the value for a firm, yet he is paid as if he does just that. As a result many CEOs also get paid large amounts even when the company performs poorly which is proof that these executives were not paid for any value created.

I believe that stock options should be used only to reward better than average growth and thus should be granted at an exercise price that is well above the current market price of the shares. Pensions are another component of compensation that has gotten out of hand. A better way to calculate it would be to use a percentage of all years of employment but to adjust prior year's salaries to actual inflation. Shareholders should be given more power when it comes to executive compensation and should ensure that those wages are indeed fair and that there is open disclosure.

CONCLUSION:

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