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Dodd proposal could transform corporate boards

One of the many flaws in the way big corporations are run is the way CEOs dominate the boards of directors they're supposed to be reporting to. Look no further than CEO Mayo Shattuck's tame panel of lackeys at Constellation Energy. Technically CEOs don't choose their directors, but they have effective veto power and frequently "suggest" "suitable" candidates to the nominating committee. Barry Ritholtz describes the phenomenon well in Bailout Nation.

Now Bloomberg's David Reilly reports that Chris Dodd's financial-reform bill would allow shareholders themselves -- the owners! -- to decide who should run their companies. But, as Reilly notes, the proposal will be fiercely fought.

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