The Verizon shareholder vote that for the "say on pay" too close to call and the stakes are high.

A vote for the proposal is likely to boost the efforts of Democrats in Congress to pass a law requiring a mandatory shareholder vote on remuneration.

But the question is whether the law would actually put a lid on soaring compensation.

As I have pointed out here, the experience overseas is that it has improved board accountability and resulted in more dialogue with shareholders but pay levels have continued to ratchet up.

Academics from Wharton have come up with solutions to the problem.

1. A ban on compensation consultants doing other business with the firm.

2. Boards should seek advice from more than one consultant and they should change consultants every five years.

3. Boards should set pay limits before searching for new executives. It could put them in a stronger bargaining position when hiring.

4. They should formulate contracts that make it easier to fire executives and they should not include golden parachutes.

5. If they put in a severance package, it should only be for the first two or three years.

6. Go easy on the stock and options.

7. Base the pay on returns exceeding the market average and not the stock price, thus ensuring executives don't profit from short-term spikes.

Interesting ideas for boards to consider. Legislation has a limited impact - you can't outlaw greed. In the end, the solution has to come from directors who have been put there to represent shareholders.