Watson Wyatt Study Finds Groups Agree That Executive Pay Disclosure Rules Are Helpful but Need Improvement
Corporate directors and institutional investors disagree over whether the U.S. executive pay model is changing for the better, but both groups feel the current model has hurt corporate America’s image. These are the findings from a new study by Watson Wyatt Worldwide, a leading global consulting firm.
“While directors and institutional shareholders agree on key executive pay issues, they don’t see eye-to-eye on other areas,” said Ira Kay, global director of compensation consulting at Watson Wyatt. “While directors believe the system generally works, institutional investors generally feel the model’s flaws run deeper and require more substantial changes. Clearly, more work needs to be done.”
Nearly two-thirds of directors (63 percent) think the executive pay system is improving compared with just 36 percent of institutional investors, according to Watson Wyatt research. The two groups also diverge on whether the executive pay model has helped to improve company performance.
See full Press Release.
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