The Supreme Court is now hearing arguments in a case brought by individual investors against Oakmark mutual funds. The plaintiffs argue they were charged more than institutional investors for similar services. The case has taken on some larger meaning because the court seems willing to discuss the issues in the context of executive pay, in general--an issue that couldn't be bigger right now.

The New York Times has read the tea leaves and says the "Supreme Court is likely to announce a new standard for evaluating claims of excessive compensation under the 1970 law." The appeals court's decision "gave great deference to compensation decisions made by directors," but that will not likely survive. 

The issue is how the decision will affect compensation in general, an issue the Fed, the pay czar and bank boards are grappling with. 

For more:
- here's the article

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