The Conference Board Task Force on Executive Compensation Lays Out Five Guiding Principles
The economic crisis and subsequent, unprecedented government intervention, along with much publicized payments to executives of companies with plunging stock prices, has intensified public scrutiny on corporate practices regarding executive compensation.
The Conference Board Task Force on Executive Compensation, which was convened in March 2009, believes public corporations and directors are at a crossroads with respect to executive compensation. In a report published Sept. 21, 2009, the Task Force recommends that publicly traded companies take immediate and credible action to restore trust in the ability of boards of directors to oversee executive compensation.
The Task Force recognizes that a "rules-based" approach cannot provide the essential flexibility required to accommodate the disparate industries, strategies, business models, and stages of development represented in the more than 12,000 U.S. public companies.
See full Press Release.
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