Cengage Advantage Books: Introduction to Business Law 4th Edition by Timothy Koch, Jeffrey Beatty, Jeffrey Beatty, Susan Samuelson, Susan Samuelson

Exercise 6

Would the following initiatives improve corporate governance Can you think of others that would
• Proxy access: As originally 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)