Adam Smith Probably Didn't See This Coming

One of the hallmarks of modern stock markets is that the power of management has eclipsed the ability of investors to control them. CEO's make mind numbingly large salaries, even at companies whose performance is decidedly mediocre.  

The reason seems to be because stock markets have become so liquid that investors have no commitment to a particular company.  Boards of Directors are filled with folks from management of other companies who benefit from the general inflation in management salaries, so the notion of board oversight on salary has proved to be a fantasy.  Capital Gains tax rates are so low it is not worth challenging management, you just aim to buy stock cheap and sell it when you have a gain and move on to some other stock.  

A side effect of the current situation that is more of a problem for society is that companies do less planning and investment for the long term, hire fewer people, and generally focus all their attention on doing whatever is necessary to keep their stock price as high as possible, right now.   Layoff's that reduce overhead are often the quickest and easiest way to keep your bottom line looking good.

How do we bring investor control back into the equation?  How do we motivate companies to take a more long term view?  To focus on making the company more valuable in the long term?  What if you had to hold a stock for 10 years to get truly low Capital Gains tax rates?  Would that bring investor control back?

Or do we care if capital doesn't control companies very well?  What if we just go back to the punitively high taxes that applied to the very wealthy from 1950 through 1980 and use the tax revenue generated to make sure everyone can afford a good education that won't cripple them with debt?  
If management pays themselves exorbitant salaries, a big chunk will go the Uncle Sam to be used for scholarships, or a more generous GI Bill. So at least we will maintain a society based on achievement rather than continuing the gradual slide we are currently in toward a class based society, where rich kids always have opportunity and only the very best of the rest will be able to rise to the level of achievement they aspire to.