Carl Icahn Channels Adam Smith's Anti-corporatism

Serious billionaire financier Carl Ichan says he "understands" the desire to cap executive pay, but that Obama is barking up the wrong tree. He offers the corporate version of power to the people instead: Power to the shareholders!

The real problem is that many corporate managements operate with impunity—with little oversight by, or accountability to, shareholders….

The problem…is that boards and managements have been entrenched by years of state laws and court decisions that insulate them from shareholder accountability and allow them to maintain their salary-and-perk-laden sinecures….

Management-friendly states have a vested interest in attracting these companies because hosting them generates a substantial portion of state revenues. It's a symbiotic relationship: The state offers management protections and, in return, receives much-needed tax revenue.

Sounds familiar. Adam Smith, anyone?