In the arena of executive compensation, two recent developments stand out against the backdrop of continuing looting. First, the Securities and Exchange Commission announced plans to make corporations more fully disclose executive pay. Second, a study by Mercer Human Resource Consulting found that more companies were imposing performance targets on the stock and options they granted to C.E.O.'s.
To the uninitiated, these events may suggest that some moderation is in the offing, but ultimately neither will help much. Any benefit from shining the cleansing light of day on executive greed will probably be outweighed by the inflationary effect of additional disclosure, which will provide more ammunition for executives and consultants seeking to justify additional increases. They have to keep up with the Joneses, they'll say.
See full Article (free registration required).
Posts
