Investigation launched into soaring executive pay

[cory777]

Source: Guardian

An investigation into the escalating pay of boardroom bosses will be launched today as Barclays prepares to reveal that its investment banking arm has amassed a pay and bonus pot of at least £4bn this year.

As the high pay commission, set up by the thinktank Compass and backed by the Joseph Rowntree charitable trust, begins its year-long analysis into the widening gap between the lowest and highest paid, a Compass poll shows that 99% of people believe that top executives are overpaid.

The poll, intended to coincide with the launch of the commission, shows that only 1% of people think that top executives should be paid as much as they are, while 64% believe that a chief executive should take home less than £500,000 a year.



Read more: http://www.guardian.co.uk/business/2010/nov/09/executive-pay-inquiry-launched?CMP=twt_fd

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[Lasher]

1. The compelling question is, why are they being overpaid?

I would love to see something like this undertaken in the US.

[indimuse]

2. KNR! n/t

[dmosh42]

3. The Board which voted his pay, usually gets into the action, also! n/t

[Selatius]

4. The problem is a conflict of interest inside the corporate structure.

Typically speaking, the board of directors appoints people to the compensation committee, but in many countries, including the US, there is no firewall against the chief executive submitting suggestions to the board about who sits on the committee.

Worse yet, if you are both chairman of the board and CEO of the company, you can directly appoint all your friends to the compensation committee.

[Billy Burnett]

5. Many members of Boards of Directors sit on each other's boards.

Peruse this site and see for yourself ...

http://www.theyrule.net/