As we enter into proxy season for corporations around the world, one of the key questions for boards and CEOs to answer is why executive pay seems so out of line with what inherently seems justified.Recent headlines have brought us news that Citigroup lost an advisory "say on pay" vote, that BP executives are being accused by shareholders of having their 'snouts in the trough', and that Barclays Bank is facing a major shareholder rebellion over Bob Diamond's £18m pay package.
These are not exceptional cases from the energy or banking sectors but rather illustrative of a much broader trend: compensation packages, when exposed to the light of public scrutiny, evoke a range of negative reactions because they seem out of line with results, and pay differences and ratios are striking.
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