The Advisors' Blog

– Broc Romanek, CompensationStandards.com

After reading the twin studies by Stanford (here’s a blog about them) about how the general public perceives CEO pay negatively, you had to wonder if mutual funds would feel the heat about how they vote on pay packages. This Reuters article entitled “Investors want mutual funds to get tougher on CEO pay” would lead one to believe that could happen…but we’ll see. Here’s the article intro:

The usually close-mouthed Capital Group is speaking up on executive pay – throwing more brickbats than bouquets. In a recent interview, leaders of the $1.4 trillion Los Angeles-based investment manager said they worry about the magnitude of pay for chief executives and question whether corporate boards are using the right benchmarks to determine compensation.