Here's what he says about shareholder activism on pay:
Collective action by shareholders has been timid. One wonders how sincere the institutional investors are about reforming banker pay. Many of the biggest fund management groups are owned by banks; almost all of them are beneficiaries of the same flawed bonus system — one that rewards short-term success and buys into the notion that financiers are hugely talented.
Shareholders should be the solution to the bonus problem. In fact they are self-serving agents who have become part of the problem.
Interestingly the book I blogged about recently makes the same point. If the fund management industry pays highly, how likely is it to rock the boat.
In practice I suspect that individual who could make a difference don't deliberately take a soft line on remuneration because they want to protect their own income. But I reckon it must be hard to take a challenging line on such issues as it may well be seen - or the individual may fear it will be seen - as an attack on City culture. I think there remains a deep cultural antipathy towards governance activism in institutions as a whole. The corp gov people might be very sincere, but the organisation doesn't buy it.