Search
 

Executive Pay Scrutiny Spreads

Rumblings to cap top compensation at $500K still heard on Capitol Hill.

By Russ Banham | Updated on March 03, 2009

While the American Recovery and Reinvestment Act signed by President Obama on Feb. 17 aims in part to appease the furor over excessive pay for the financial services executives who engulfed the world in economic turmoil, the $787 billion package also serves as a warning to all companies, especially their board compensation committees, to re-evaluate their own executive pay structures. “They would be smart to behave like they, too, are under the gun,” says Alexander Cwirko-Godycki, research manager at Equilar Inc., a Redwood Shore, Calif.-based compensation research firm.

“Absolutely obscene,” is how David O’Brien, former director of treasury operations at Fidelity Investments, describes the bonus bonanza in financial services. “These firms have senior managers making tens of millions of dollars who failed miserably in doing their jobs. This was supposed to be `pay for performance.’ These people drove their companies into the abyss. I see the `pay,’ but where was the `performance?’” says O’Brien, now president of treasury management consultancy Enlightening Enterprises.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

 

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2022 ALM Global, LLC. All Rights Reserved.