A new study revealed that atleast two out of ten directors believe that CEO compensation is "too high".
Find below the interesting study facts from WorkForce.com
Roughly three out of 10 directors believe that CEO compensation is “too high in most cases,” according to a new study by recruiter Heidrick & Struggles and the University of Southern California’s Marshall School of Business.
The study polled 227 directors of U.S. public companies.
The findings of the USC study beg the question: Why are these board members signing off on excessive pay packages? After all, a board’s compensation committee is charged with setting the level and type of compensation given to chief executives.
Ed Lawler, a professor of business at the USC and co-author of the study, says that board members swear it’s not their fault; compensation consultants, they claim, are the major reason CEO pay is so out of control.
“Directors are saying that in the interest of making more money, compensation consultants keep coming up with new incentive products that boards have to buy to stay competitive with their peers,” Lawler says. “So in some ways, yes, they contribute.”
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