Part 4/9:
The Broader Context of Executive Compensation
The conversation extended into a critique of proxy advisory firms, which often recommend voting against such compensation packages based on perceived fairness. Critics such as Wood believe these firms are biased and that their recommendations can hinder long-term value creation.
Brandon, another participant in the discussion, highlighted that many businesses are registered in Delaware, where courts have significant authority over corporate disputes. He warned that overreach by courts or proxy firms could threaten the ability of boards to fairly incentivize top executives.