Monday, March 11, 2013

The EU way ahead of the US on responsible corporate regulations

See this article. While the US Attorney General is lamenting that US corporations are too big to criminally prosecute, thus virtually promoting the kind of financial abuse that nearly melted down the entire system, the EU is making some small yet significant advances in the other direction. On March 3 the Swiss gave corporate shareholders the right to determine executive and director pay. It also did away with golder parachutes. Two days later the EU finance ministers limited banker bonuses, as well as require stricter capital requirements and more transaction transparency. Britain opted out of the program though, content to let corporations continue to run wild.

Meanwhile, in the US the Dodd-Frank bill provided that shareholders could recommend input on CEO pay, but only every 3rd year and it was non-binding. So did CEO's take such "recommendations?" You seriously have to ask? The Bill also said corporations must report the ratio of CEO to work pay but no one does it and it isn't enforced. To the contrary, most all regressives in Congress want to overturn the Bill in toto. As it is they've managed to de-fang and de-fund it to the extent that it doesn't do much.

Yes, the US is a far cry from that evil "socialist" EU. Too bad, for they are leading the way on this one as they've done on so many other issues. If only Obama were a European type socialist. One can hope.

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