CEO Compensation: Is an Accountability Trend Starting?

by Michael Haberman on April 23, 2012 · 0 comments


 

Is CEO accountability up and pay trending down?

Perusing the newspaper the other day a couple of articles on CEO Compensation caught my eye and I wondered if perhaps we are starting to see a trend in what companies are doing in CEO compensation and accountability.

The first article was “NCR sets bar higher for CEO” and it talked about a corporate governance group voting against the CEO’s compensation package. The article quoted an analyst who said this “… reflects the trend of shareholders speaking out against compensation they feel was not earned.”

A second article was titled Express Scripts CEO’s compensation drops. It related that the Chairman and CEO suffered a 17 percent reduction in total compensation which matched a similar reduction in the stock of the company. 

In another story it was announced that Disney studio boss, Rich Ross, stepped down after their movie “John Carter” cost the studio $200 million. A case of “you don’t produce, you don’t stay.”

Does this mean that stockholders are paying attention to the protests about CEO’s making too much money? Time will tell but I think this will be a growing trend in proving you are worth it.

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