Thursday, December 15, 2005

USATODAY.com - Pension funds pin target on CEO pay

USATODAY.com - Pension funds pin target on CEO pay:
"Runaway CEO pay, a longtime pet peeve of shareholder activists and corporate governance experts, is about to take center stage in Washington, D.C.

At least that's the hope of 10 pension funds from the USA, Canada and Europe. In a confidential letter sent to the Securities and Exchange Commission on Nov. 30, representatives of the funds, which together manage almost $1 trillion, urged the SEC to look more closely at the pay for performance among top executives"
Interesting factoid:
"At 60 of the worst-performing companies in that group, which lost $769 billion in market value over the past five years, the aggregate pay for the top five executives of those 60 companies over the same period was $12 billion."

Which even after adjusting for risk seems a tad inconsistent with pay for performance.

No comments: