OK. It’s not just some crack pot Post reader and blogger who says it, the president of the United States, in response to a question on CEO pay at the G-2 press conference today, just said that the problem is…
- CEOs select their boards
- Setting up a cozy relationship
- Then they hire comp. consultants and
- Surprise, they get $20-30 mil. comp packages
- Does not serve shareholder interest
- Distorts CEO decisions
- Need shareholder voice/vote
And as CNBC pointed out yesterday, big salaries don’t automatically provide shareholder value.
So, as I just wrote to several Post reporter’s and its ombudsman, what about an examination of the role of boards of directors?