March 14, 2016
Who Really Determines CEO Salary Packages?
– Broc Romanek, CompensationStandards.com
In this study, Susanna Gallani of Harvard Business School proposes two reasons why CEO compensation packages often look so similar to one another:
– Interlocking directorates: many directors are board members at a number of public companies – and she found evidence that companies with directors in common have similar compensation packages.
– Compensation consultants: strong commonalities among pay programs at companies that shared compensation consultants – and whether compensation consultants should be held to similar accountability standards as auditors, noting that on many proxy statements the name of the consulting firm does not appear.