Tuesday, September 23, 2008

What I’m Hearing…Executive Compensation

I was watching the ABC World News last night, and of course the upcoming Presidential election was one of the main stories. The candidates’ stands on Executive Compensation were a primary focus for the evening. It appears that the American public has had enough of golden parachute and other severance provisions that in many cases reward failure rather than success. The concept of “Say on Pay,” or shareholders’ opportunities to vote on executives’ pay, was also mentioned.

Presidential election notwithstanding, it is time for Americans to look more closely at executive compensation, and to make sure that pay is truly for performance – positive performance. While the average American may think they can’t control what happens at a Fortune 500 company, it’s time to think again. The power of consumers is great. Vote with your spending and dollars, and see how quickly changes and accountability come to organizations that previously seemed untouchable.

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