• Would the following initiatives improve corporate governance? Can you think of others that would?
• Shareholder proposals: require the board of directors to implement shareholder proposals that receive a majority vote
• Proxy access: as proposed by the SEC
• Majority vote: prohibit boards of directors from seating directors who fail to receive a majority vote of shares cast
• Compensation: base compensation on the company’s growth in earnings compared with those of its competitors, not just increases in earnings (that might be caused by a general market rise)