Cavuto Interviews George W. Bush

Fox News Business Host Neil Cavuto interviewed President Bush today on a variety of topics. The President's response to questions about CEO salaries and corporate governance was interesting--he emphasized that government's role in regulating CEO salaries should be very limited and that the major role of government in managing businesses was to assure accurate and transparent financial reporting by businesses. The interview is available at the Fox News link listed in this post's title--go to the "Your World" exclusive on President Bush and watch Part I.

Virtually no one would argue the value of accurate and transparent financial reporting--the other part is more controversial. Though my instincts on government regulations are similar to the President's, I will acknowledge that many believe that better financial reporting, though worthy, may not be enough to give small stockholders the ability to stand up to powerful management committees if management is acting to maximize personal interests while putting the company's long-term prospects at risk.