Compensation for American CEOs has soared over the past decade, far exceeding inflation and wage gains of ordinary workers -- and leading critics to charge that self-serving insiders have tilted the playing field at shareholders' expense.
In response, the Securities and Exchange Commission on January 17 took the first step toward adopting rules to better show shareholders how much their top executives and directors are paid. The changes, pushed by the commission's new chairman, Christopher Cox, would for the first time require companies to clearly report a total compensation figure for each of the top five executives and all directors. Disclosure would include the values of stock options, retirement and severance plans and perks worth over $10,000, all of which are difficult or impossible to assess currently. A final vote is expected in the spring after a public-comment period, and most observers expect the rules to be adopted.
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