REIT Shareholders Frustrated As Exec Pay Surpasses Returns
May 31, 2012
Christine S. Azar and Lawrence A. Sucharow Explain Shareholder Frustration With Corporate Governance Reform and Executive Compensation
Though it is possible that some shareholders may look to the most extreme option and try to throw out their boards, it's more likely that some of the pressure will shift to the SEC. The agency gave institutional investors the ability to sue over awards and fees with the Private Securities Litigation Reform Act of 1995, a tool that Azar and Sucharow said "just doesn't work." They say it may be time for a rule with more teeth.