Clawbacks and the Heat Index

It’s too hot to type today. We’re going to have a 105F heat index in Philly this afternoon. So I’m conserving my energy and pointing you to an excellent article in the NYT yesterday by Gretchen Morgenson titled “Pay It Back If You Didn’t Earn It.” [Reg. required, but you might as well. The NYT has excellent business articles.]

The article is about clawbacks for executive pay that was based on bad financial figures. There are 300 companies that are doing it this proxy season, as compared to only 14 companies four years ago. A great line: “Only in executive payland would figures like these qualify as progress.”

About the heat index: Stay indoors between noon and six. Drink plenty of water. Restrict your physical activity to only the necessary actions. I’ll be back to regular typing when the temps dip below 90.

Excessive Exec Pay = Chance for Malfeasance?

Sarah forwarded and article to me yesterday titled “Correlation Between Executive Pay and Fraud?” Interesting academic analysis. I’m going to look much more into this. Just brining it to your attention. (NB: I’m Mr. I Am Skeptical About The Chance for False Correlations.)

Congress Wants to Talk to Execs About Their Pay Packages During the Mortgage Meltdown

They’re going to have to come up with some answers.

A Good Story About Executive Compensation

I wonder about the ratio of “executive greed” to “executives do the right thing” stories in mainstream media. It’s gotta be 100:1. Or 1000:1.

This is a story about executives doing the right thing. The Philadelphia Inquirer ran a story today titled “Comcast Founder Slashes His Pay.” The story talks about the decision Ralph Roberts made to work for $1 a year and how Comcast execs chose to cut their earned bonus payments. They didn’t have to. They made principled decisions. That’s a heckuva HR message.

And what message is your exec comp sending to employees?

New CEO Peer Group Reference Point?

I bet there are a lot of CEOs who would like to see this guy’s pay included in their peer group analysis. $3 BILLION annual salary.

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