Watch Your Wallet, Boss

Representative Barney Frank, Democrat of Massachusetts (above), is back up on his soapbox, and this time his target is the third house you just bought in Palm Beach.

On Wednesday, the New York Times informs us, Frank put up for debate in the House a nonbinding resolution that would allow shareholders of public companies to vote on executive pay packages.

Naturally, the issue follows party lines closely, which means a spirited, highly entertaining food-fight between Democrats and Republicans.

The measure invokes a doomsday scenario in the hearts and minds of Republicans, who are now in the awkward position of defending somewhat indefensibly large management pay packages.

So far the opposition argument goes something like this: it's non-binding and thus totally ineffective! It will drive public companies to go private or go overseas! It will turn corporate boards into nothing but mouthpieces for rabid special interest groups! The world will explode into a million pieces! Just kidding about that last one.

Meanwhile, Frank and followers play the part of humble advocates of the people, defenders of the little guy (and by little guy, we also mean hedge funds).

All they ask, after all, is that the C.E.O. of a publicly traded company not walk off with a paycheck that looks like the G.D.P. of a small country--no sir, not without shareholder say-so.

Before you start your "power to the people" chant, Congress is probably not going to revolutionize executive comp any time soon. Barney's brainchild is likely to pass in the House but is not even up for debate in the Senate, and the White House is less than supportive of the idea.

Plus, it's "non-binding," which means corporate board could blow off shareholder consensus whenever they wanted.

In a post earlier this morning, Dealbreaker.com raises the point that the resolution might backfire anyway when lackadaisical shareholders fail to exercise their new power, thus effectively endorsing outsized executive pay.

by Liz Gunnison