Compensation is more a side effect of the issue discussed in the link. Shareholders are unable to even make a nomination for the board of directors, so the very people who own the company are unable to make decisions regarding how the company is run.
Even huge pension funds typically hold no more than 0.3% to 0.5% of large and medium-sized companies, so it's impossible to picture that happening very often.
There's more info in this Motley Fool article: http://www.fool.com/investing/general/2010/06/18/dont-let-wa...
Even huge pension funds typically hold no more than 0.3% to 0.5% of large and medium-sized companies, so it's impossible to picture that happening very often.