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Executive Pay Scrutiny Spreads

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

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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.

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