Give that CEO a pay raise!
How an attempt to cap executive salaries a decade ago inadvertently led to the corporate mess plaguing us today.

Yesterday, the Senate approved President Bush’s proposal to forbid corporations from extending loans to top executives. The measure, almost certain to become law, will come far too late for companies like WorldCom, which has virtually no hope of collecting the $400 million it lent to former CEO Bernard Ebbers. And there’s little reason to believe the ban will reduce runaway executive compensation. But it is sure to have some unintended consequences. Consider what happened the last time Congress played executive compensation consultant: It inadvertently set the table for today’s scandals.