“When President Bush talks about CEO pay, you know it’s a ‘hot topic’ on the national agenda,” says Robert Reich, professor of public policy at the University of California at Berkley and former secretary of labor under Clinton. President Bush addressed this topic in a speech last week, exhorting corporate boards to tie CEOs’ salaries and bonuses to their success in improving companies and bringing value to shareholders. Lawmakers in both houses of Congress plan to make laws affecting executive pay packages. Under the new laws from Congress, and a new rule from the Securities and Exchange Commission, companies will have to provide a simplified summary of top executives’ compensation in their public filings. Recent events such as Bob Nardelli’s $210 million exit package at Home Depot have helped push CEO pay into the public spotlight.
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