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CEOs are still overpaid? (Pt. 2)

Even Megan McCardle laments:

I wish someone had a better answer to the question of why large institutional investors aren’t more active in corporate governance.

Here's two reasons:

1) Rational apathy
2) Lack of comparative advantage in doing so

Comments (3)

Here's a third: fiduciary duty.

sam:

I've wondered why companies don't outsource their management to India and China like they do their other functions?

M. Hodak:

If you mean routine management functions, India and China are the fastest growing market for that, as well. The age of the U.S. management ex-pat is going away.

As far as top management positions, U.S. CEOs are already competing with top Chinese and Indian talent:

http://www.sree.net/stories/bt-gupta.html

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