The second and better remedy is not to rely on a few individual court cases that might succeed or fail—or for random regulations to be issued by government entities setting compensation standards. It is, rather, for boards, compensation consultants, and shareholders finally to awaken to their duties. If there is to be a revival in our corporate-management structure, it must begin with these stakeholders. They must insist on far greater transparency and far stricter evaluations of CEOs, eliminating the year-end congratulatory assessments that seem untethered to any economic reality.
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