Sunday, April 29, 2007
More On The "Say On Pay" Bill
The CEO makes more money on January 1st than most of us make the entire year, asserts The Christian Science Monitor. Here is another article about the recent move by Rep. Barney Frank and the House Financial Services Committee to impose restrictions on executive pay. Rep. Frank hopes the new measures will retard [the] rate of growth... substantially" for executive pay. Rep. Frank also claims that there is no correlation between CEO pay and CEO performance. According to Harvard Law School professor Lucian Bebchuk, who testified before the committee, excessive executive pay is not merely unjust - it can have severe "macroeconomic consequences" and the revolt against it is "not merely symbolic but rather of practical significance."
Skeptics of the effectiveness of these measures may note that, since the United Kingdom passed a "say on pay" bill in 2003, it has had "a real impact on executive compensation in the island nation."
“Congress pecks away at CEO pay” from The Christian Science Monitor