What reaction, if any, should the government take to regulate executive compensa

Question

What reaction, if any, should the government take to regulate executive compensation? One example is the $3.6 billion in bonuses Merrill Lynch executives received shortly before the merger with Bank of America. This story has two sides – nothing in their contract prevented the distribution of the “earned ” bonuses but the payment was rushed through before the merger. Also, bear in mind that this was after the U.S. Government stepped in and rescued the company to prevent it from going into bankruptcy. So these executives walked away with the “golden parachute ” after tanking Merrill Lynch and forcing the government to spend billions to protect our economy.

In 100 words or more really in detail

Explanation / Answer

The following links will help you: http://www4.gsb.columbia.edu/rt/null?&exclusive=filemgr.download&file_id=734331&rtcontentdisposition=filename%3DBebchuk_Columbia_May2010.pdf http://forum2009.itcilo.org/en/thematical-papers/executive-compensation-and-the-economic-crisis

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