From the Maoxian blog: December 8, 2006 Reforming Corporate Governance is the Ultimate Impossible Dream This excerpt from William Thomasâs 2005 Annual Letter makes it clear why you should read all his Letters: ââ¦ the irresponsible directors of Corporate Americaâs 500 biggest businesses have continued to facilitate the wholesale transfer of wealth from their companiesâ owners to their managers. Something is seriously wrong with a system that prevents companiesâ real owners from controlling the compensation of their hired managers. Something is seriously wrong with a system that pays the 50th highest-paid executive 865 times as much as the average worker or the 250th highest-paid executive 171 times as much. This is not capitalism. It is grand larceny, which enables elite capitalist con men to rob the proletariat. It threatens our economic system and paves the road to socialism.â ************************* I couldn't agree more. We have a large-scale breakdown in corporate governance that has allowed managers to appropriate for themselves obscene amounts of money that rightly belong to shareholders. History teaches us that these ever-growing imbalances cannot persist forever. In the past they have lead to revolution. Our leaders' response is not to address the problem, but rather to allow a vast influx of illegal immigrants from countries where such imbalances and unfairness are the norm. Please spare me the responses accusing me of being a socialist who doesn't understand the capitalist system. I am as conservative as anyone here, and I am more skeptical of government interference than most. I can recognize a problem when I see it however.