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There is a basic logical flaw in the recommendations of the Neeman committee on controlling executive salaries. The recommendations give the responsibility for supervising executive wages to each company's board of directors, but also to the shareholders general meeting. In either case, it is a matter of the cat guarding the cream.

There is no point in saying anything more about the board of directors representing the fat cats. After all, the committee itself discussed the market failures relating to the boards' activities and saw no reason to strengthen their supervisory mechanisms.

As to the shareholders general assemblies, which are under the control of institutional investors, it is also unnecessary to say anything, other than that they, too, are fat cats. The evidence is clear: The institutionals have almost never acted against scandalous compensation packages, whether through the shareholders meeting or another channel. That is no surprise, since after all the managers of the institutionals are among the leaders in the salary standings of public companies.

That is why any hope that the fat cats themselves will put an end to the out-of-control excesses of executives salaries is a baseless fantasy.