Corporate directors don’t like it when shareholders accuse them of being management cronies, but how else can they be seen when they drop the ball on basic responsibilities like leadership development and executive pay?
Archive for October 10th, 2009
Published in The Wall Street Journal October 10, 2009 by David Yermack
Having Uncle Sam set executive compensation is unnecessary and unworkable. David Yermack on how companies could strengthen their own checks and balances.
As politicians struggle to repair damage from the 2008 financial crisis, they are fixating on a dubious target: executive pay. Behind every bankruptcy, bubble or bailout, somebody has spun out a theory about incentives gone awry. The obsession was on display just yesterday, when Citigroup agreed to sell its lucrative Phibro oil-and-gas trading business, where its chief had negotiated a contract that required the giant bank to pay him nearly $100 million in compensation for 2008. Federal regulators told Citigroup, which had received a large infusion of government aid, to either renegotiate the contract or sell the unit.
Grahall invites you to participate in the 2009/10 Survey of Business, People and Total Reward Strategy Changes
Grahall’s Michael Graham says: “Many of our clients and friends have begun to ‘re-think’ their organization’s reward programs for 2009 and 2010. For most firms the first phase (the last 6 months) was directed towards continuation of cutting costs ‘across the board’ in an effort to respond to the turbulent economy. Many now are entering the next phase of restructuring / realigning / renewing them in order to more effectively position their organization’s Business and People Strategies in anticipation of economic recovery. This research study is designed to take an in-depth look at the immediate past, and more importantly, to capture plans for the future.”
Claudia DeFrancisco, survey coordinator, says: “After we collect and analyze the data, participants will receive a summary report of this study at no cost. Be assured that responses to this survey will be held the strictest confidence, and that your firm’s data and responses will not be disclosed to anyone.”
The survey will take just a few minutes to complete; it is organized in 5 brief sections:
• Environmental and Organization Profile
• Stakeholder Influence Profile
• Business Strategy
• Recession-Related Changes to People Strategy
• Rewards Strategy and Recession-Related Changes
Click here to participate in the survey contact Claudia DeFrancisco at email@example.com,