https://francinemckenna.com/wp-content/francine-mckenna.png 0 0 Francine https://francinemckenna.com/wp-content/francine-mckenna.png Francine2008-01-23 19:07:002010-02-17 19:43:30"Say On Pay"? Tell It To The Source – The Bendable Directors
That’s the way me and Jake, that’s Jake Zamansky, see it when talking about the Compensation Committees of the Boards of most public companies. The Directors bend over backward for their buddies because their buddies will bend over backward for them later. As Jake points out, most Directors are still fellow CEOs, and the Boards of Directors of most public companies are still an old, and I mean old like 70+, boys’ club of plain vanilla white guys who grease each other’s palms in a corporate circle jerk that borders on the obscene.
“By any measure, paying these men hundreds of millions of dollars for their recent performance is not justified – which is exactly why Mr. Waxman is calling in the wrong people. It should instead be the corporate board members overseeing the compensation committees that should explain the payouts. Maybe executive compensation consultants hired by corporate boards should face questioning too, such as Hewitt Associates of Lincolnshire, Illinois, and Mercer Human Resources, which were involved in the decision to give Dick Grasso over $100 million. The ones who accepted authorized pay shouldn’t be flogged.”
I’ve mentioned some of the cases Jake mentions, like Grasso, and pointed out the willingness of the compensation consultants to enable the addiction to pornographic amounts of money that have become the norm, good performance or not.
And who stands by and lets everyone get punch trunk at the corporate trough, with nary a mention of independence issues and quid pro quos?
You guessed it, our friends the auditors (and their regulator, the PCAOB).
As I’ve said before, the Big 4 (and their regulator) are lap dogs, not watch dogs, drooling at the money their clients are taking home even though their companies are going to the dogs. Maybe that’s the reason they’re not feeling the least bit guilty about the racket they’re pulling on shareholders.
After all, no one is calling them out on their gluttony in the face of incompetence either.