March 8, 2013
Why ‘Good Governance’ Ends Up Raising CEO Pay? Yeah, Right…
– Broc Romanek, CompensationStandards.com
What can I say about this Crain’s article? It piggybacks off a paper by a U. of Illinois professor who claims that CEOs who adopt good governance frameworks ingratiate themselves with their board and wind up with a larger pay package.
Just thinking out loud here: do you think this academic has ever talked to a director or someone who has actually been in a boardroom? There certainly are better ways to kiss the bottom of a director than adopt good governance! One of the first stories I heard when I got in this field many moons ago – crisp $100 bills were placed under the dinner plates for each director, the dinner being held the night before a board meeting…