Paul Abrams: Curing Excessive Executive Compensation--and Reducing Job Off-Shoring--Without Regulation

It is not really so difficult.

Because investors are a diverse group, they rarely get together on their own to force corporations to take specific actions. Thus, the power of investors to enforce change is ignored.

But, investors have another power that does not require concerted action--they vote with their feet, and, if the appropriate "force-fields" are erected, the sum of their individual actions will, in a way that would have pleased Tolstoy, change corporate behaviors.

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