I am confused by how that statement can be true. If the majority of the owners disagree with his compensation, how can the majority of the owners not go fix the problem? Did they sign a terrible contract?
This is because the executive compensation package is typically determined by the board of directors, not the shareholders. Shareholders can express their opinion on the matter with a vote of "no confidence" like this and the board will give it the due consideration that it deserves. If you have the time check out what companies are run by the members of the board and see if they don't sit on each others boards. Fred won't mess with Larry's compensation because LArry is a member of the board at Fred's company. In the end the board members all get their backs scratched and the shareholders just get fscked.