Edwards Campaign Tackles ‘Culture of Greed’

Presidential candidate Edwards focuses on executive compensation, shareholder rights in corporate responsibility proposals

By Danielle Lee

Democratic presidential candidate John Edwards announced new executive-compensation and shareholder-rights reforms Friday that go beyond Sarbanes-Oxley law as a part of his larger “Restoring Corporate Responsibility and Rebuilding the Middle Class” proposal.

These reforms would give long-term shareholders the right to render an advisory vote on executive compensation; call a shareholders' meeting; recall a limited number of directors; and have proxy access to the candidate slate for boards of directors.

He also advocates a “Corporate Citizenship” law that would require businesses to disclose "the pay and demographics of directors and top officers," as well as publish annual social-impact reports.

“In corporate America, where a broader sense of social responsibility once held sway, a culture of greed has taken over,” Edwards said in prepared remarks Friday in Des Moines, Iowa. “Instead of treating their employees fairly, being accountable to their shareholders and contributing to America’s prosperity, CEOs act like their corporations exist just to build their own massive fortunes.”

In the wake of toy industry recalls from Mattel and Fisher-Price, Edwards also announced a strengthening of penalties for product safety violations.

Additionally, Edwards will push for a change in labor law, making it easier for employees to unionize under the Employees Free Choice Act and creating stiffer penalties for companies that violate labor laws.

Other elements of Edwards’ plan include capping unfair levels of executive pensions and increasing the government's enforcement of conflict-of-interest and negligence charges against mutual funds and other institutional investors.