Even as momentum continues to build to require a shareholder vote on executive pay at all publicly-listed firms, few companies have taken steps to prepare for Say on Pay or plan to do so in the next six months, according to a new survey by independent compensation consultancy Pearl Meyer & Partners released today at the National Association of Corporate Directors Corporate Governance Conference.
Archive for October 20th, 2009
Published in CNN Money October 20, 2009 by David Ellis
President Obama’s “pay czar” will soon decide whether top executives at firms that received the most assistance from the government during last year’s financial crisis are making too much money.
By month’s end, Kenneth Feinberg, a Washington attorney who up until six months ago was known by few on Wall Street, is expected to rule on pay packages for the 5 most senior executives at Citigroup (C, Fortune 500), Bank of America (BAC, Fortune 500) and AIG (AIG, Fortune 500) as well as 20 other highly compensated executives at those firms.
Published in Reuters October 20, 2009 by Ellen Wulfhorst
Employers and employees have dramatically different opinions of why workers remain in their jobs, says research released on Tuesday showing U.S. companies may struggle to retain employees in an improved job market.
Employees cite benefits, financial compensation, and their career growth and earnings potential as the top three reasons they stay in their jobs, according to a survey by Spherion Corp. (SFN.N: Quote, Profile, Research, Stock Buzz), a recruiting and staffing company.
Published in Reuters October 20, 2009 by Georgina Cooper
Bumper payouts to bankers should be seen as part of a longer term investment in London’s economy, the vice chairman of Goldman Sachs International told a debate on ethics at St Paul’s Cathedral on Tuesday.
Defending lavish bonuses expected at the U.S. investment bank, Brian Griffiths said he was not “ashamed” of his bank’s compensation package, which has inflamed the bonuses debate.
The British public should “tolerate the inequality as a way to achieve greater prosperity for all” Griffiths said at the public meeting examining what role morality should play in the marketplace.
Published in Bloomberg October 20, 2009 by Martin Z. Braun
40 percent jump in Wall Street bonuses this year may bring relief to New York City and Albany as the state and its biggest metropolis struggle with a combined $14 billion in budget deficits this fiscal year and next.
New York investment houses will dole out $26 billion in bonus checks by the end of March, said Alan Johnson, president of compensation consultant Johnson Associates Inc. The money will probably boost sales of multimillion-dollar co-op apartments and generate extra income-tax revenue for state and city governments.
Companies across the economy are holding off on hiring even as the profit outlook improves, amid economic uncertainty and their own success at raising productivity in rough waters.
Hiring always lags behind in economic recoveries, but the outlook this time is worse, many economists say. Most forecasters now expect a prolonged period of high unemployment, even though the government is expected to report next week that the economy grew in the third quarter, after four quarters of contraction. That is sure to frustrate the jobless and could be a problem for the Obama administration.
Since the downturn began, thousands of employers have cut pay, increased workers’ share of health-care costs or reduced the employer contribution to retirement plans.
Two-thirds of big companies that cut health-care benefits don’t plan to restore them to pre-recession levels, they recently told consulting firm Watson Wyatt. When the firm asked companies that have trimmed retirement benefits when they expect to restore them, fewer than half said they would do so within a year, and 8% said they didn’t expect to ever.