Say on pay

Okay kiddo, we're going to talk about something called "say on pay". It's basically a rule that says when grown-ups who run big companies get paid a lot of money, the other grown ups called shareholders get to say if they think that's fair or not.

So let's pretend that you're a shareholder of a toy company called Fun Toys Inc. The grown-ups who run the company are called executives, and they make a lot of money. When the company does well, the executives get even more money.

But sometimes the shareholders might think that's too much money and that the executives don't deserve it. That's when the "say on pay" rule comes into play. The shareholders get to vote on whether they think the executives should get that much money or not.

The vote is kind of like a thumbs up or thumbs down, and if enough shareholders vote thumbs down, the executives might have to give some of the money back or not get as much in the future.

So "say on pay" is basically a way for shareholders to make sure that the executives running a company are being paid fairly and not taking too much money for themselves.