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Require by law that all entities enjoying limited liability have boards composed equally of shareholder representatives and employee representatives (elected by secret ballot. One employee, one vote) with the same privileges and voting weights.

Limited liability is for real people only: A company must be held to account for the liabilities of companies in which it holds stock, proportional to its ownership share.

95 % tax on all income above ten times median, to discourage excessive remuneration of management.

Management to be "deemed to have known" of any and all activities in the company, unless it can prove to the satisfaction of a court of law that it was actively and criminally mislead by a subordinate. "He didn't tell us" does not suffice. "We asked point-blank and he lied about it" does not suffice. "We had the auditors go through the books, and he had cooked them so well that the auditors couldn't find anything" might suffice if the books are cooked well enough to credibly fool competent auditors.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Mon Nov 14th, 2011 at 05:58:58 AM EST
Strongly progressive income taxes, with perhaps extra penalties on certain kinds of excess compensation, should fix most problems surrounding management paying itself too much.

Your last point is much in the spirit of what I was proposing - putting the burden of proof on management, to show that it really and truly could not have known, as opposed to forcing the public attorneys to prove that management did, in fact, know.

by Zwackus on Mon Nov 14th, 2011 at 08:00:43 AM EST
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Unfortunately, enacting these reforms requires that the power of the existing system be broken AND that a majority of the electorate understand and insist on the necessity of such reforms after that power is broken.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Mon Nov 14th, 2011 at 09:32:12 AM EST
[ Parent ]
Well, yes.  However, I think it's at least an interesting and useful intellectual exercise to hash out new ideas and, having proven their strength through debate, get them into circulation.

Political will comes and goes, and the tides of public opinion flow in and out.  If only one side is ready to take advantage of them, than that side will always come out the better.  Having a plan and a narrative already ready and waiting allows the left to take advantage of things like the financial crisis, or Deepwater Horizon, and turn these tragedies into political victories.

And it beats drawing up plans for my bomb shelter.

by Zwackus on Mon Nov 14th, 2011 at 08:12:38 PM EST
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