Restraints on executive pay: Attacking the corporate gravy train

Economist | May. 29, 2009 (Special Report)
The global downturn has sparked outrage over executive compensation. Only some of it is justified

Strict limits on performance-related pay at banks could also do more harm than good. One reason American business has thrived for so long is that its leaders have had a stronger incentive to perform well than those of other countries (see chart 1). Limiting the ability of financial institutions to pay sensible bonuses will simply prolong their woes. Edward Liddy, who was brought in to run American International Group (AIG) after the ailing insurer was ... Full Story »

Posted by Kaizar Campwala

More Info

Tags Help
Subjects: Business
Topics: Corporate Governance
Editorial Help
Posted by: Posted by Kaizar Campwala - May 28, 2009 - 5:44 PM PDT
Reviewed by: Kaizar Campwala (review), Glenn LaBauve (review), Derek Hawkins (review), Patricia L'Herrou (review)
Content Type: Article
Edit Lock: This story can be edited
Edited by: Kaizar Campwala - May 28, 2009 - 5:44 PM PDT

Reviews

Show All Comments
Show All | Notes | Comments | Quotes | Links
Patricia L'Herrou
3.8
 by Patricia L'Herrou - May. 30, 2009

altho arguments on different sides of the issue are posed here, the direction of the piece seems more favorable to limiting restraits on executive pay. the primary watch-dog mentioned is a corporate board, altho these usually have not been effective in the past. i'd like to have read more possibilities for having voices of average investors voting for executives or boards, most of whom now have no idea about any of the people on the ballot.

See Full Review » (11 answers)
Derek Hawkins
3.9
 by Derek Hawkins - May. 29, 2009
See Full Review » (10 answers)
Kaizar Campwala
3.9
 by Kaizar Campwala - May. 28, 2009
Kaizar posted this story.
See Full Review » (10 answers)
Glenn LaBauve
4.0
 by Glenn LaBauve - May. 28, 2009

If they were doing such a good job to earn their compensation then why have mom and pop been called on around the world to bail them out. These exec were more concerned with their own greed than their fidicary responsibility that they were being paid to execise.

See Full Review » (10 answers)

Comments on this story Help (BETA)

Sort by: Oldest | Newest Hide All Replies
NT Rating | My Rating

Ratings

3.9

Good
from 4 reviews (40% confidence)
Quality
3.8
Facts
4.0
Fairness
3.8
Sourcing
3.8
Style
4.3
Context
3.8
Depth
4.0
Enterprise
3.3
Relevance
3.5
Popularity
4.0
Recommendation
4.0
Credibility
4.2
# Reviews
2.0
# Views
5.0
# Likes
1.0
# Emails
1.0
More
How our ratings work »
(See these related stories.)

Links Help

No links yet. Please review this story to add some!