February 24, 2014
New Trend of Executives Declining Bonuses: A Drop in the Bucket?
– Broc Romanek, CompensationStandards.com
Over the weekend, the NY Times ran this column about a trend of CEOs declining bonuses due to poor performance. Here’s an excerpt:
Of course, the fact that the chief executives at IBM and Barclays turned down large bonuses — not to mention all the chief executives at underperforming companies who took them — raises the question of why they were getting bonuses in the first place. As Allan McCall, a founder of the consulting firm Compensia and a researcher on executive compensation at Stanford Business School, put it, “If a company had a bad year, then what are the metrics that would lead a company to pay a bonus?”