Mutual Funds and Overpaid CEOs

October 28, 2009

CNBC's "Street Signs" host Erin Burnett says the numbers take her breath away: mutual funds consistently vote in favor of management proposals that increase executive pay — 84% of the time in 2008 — and against shareholder efforts to bring compensation in line with performance. Those numbers are from a recent report from The Corporate Library and AFSCME exposing funds' complicity in runaway CEO pay.

On Monday, Richard Ferlauto, AFSCME's director of corporate governance and pension investment, appeared on "Street Signs" to discuss the worst "pay enablers" that just aren't serving the best interests of most individual investors:

Learn more about this and other issues by checking out the AFSCME-supported shareholder online resources at ShareOwners.org.