From Mr Hermann J. Stern.

Sir, Charles Calomiris is completely misguided to call Barack Obama's active role in executive compensation “a worrying precedent for our democracy” (“Obama's executive pay move is bad policy”, October 28). It is hardly a secret that US citizens - the foundation of democracy - are outraged at certain pay practices. A democratic government has to respond to its citizens' concerns. To institute an official with the task of correcting situations that are seen as wrong by a large part of the electorate is a very democratic move. That is also why a binding shareholder vote on pay is democratic. Because of this democratic legitimacy, a shareholder vote on pay is in the interest of shareholders, the public and the executives.