CEO Pay — Making it (closer to) fair
June 20, 2008
Good news from Gretchen Morgenson of the New York Times ( http://www.nytimes.com/2008/06/08/business/08gret.html ):
“READY for some good news from your humble research assistant? During this proxy season, almost 300 companies adopted provisions allowing them to recover executive pay that they find to have been based on incorrect financial statements. Four years ago, such clawback policies were found at only 14 companies.”
So, if the board of directors has the courage to implement such a “clawback provision” the company might be able to recoup some of that obscene overpayment the directors had willingly included in the outrageous incentive package for their chosen, pampered corporate leader.
