The paper doesn’t say the obvious, though: Regulation is coming whether Wall Street likes it or not. They can’t threaten to bring down the global economy in a reckless pursuit of profits (and bonuses) and not expect to be hit with new regulation.
CEO pay to stall until nobody’s looking
The Chicago Tribune reports that the movement to rein in excessive executive pay has “stalled,” despite “rising populist sentiment and a litany of economic woes.”
Yet about halfway through the shareholder voting season, support for advisory pay resolutions is running about the same as last year, an average of about 43 percent, according to RiskMetrics Group. At 10 of 16 companies where say-on-pay proposals were considered for a second consecutive year, they received fewer votes.
The paper says that’s because people aren’t sure what’s the best way to rein them in, but it also says it’s because the outlandish increases already have effectively been reined in, at least according to some compensation measures. The Trib quotes a Mercer consulting survey that says pay for 350 CEOs in the Fortune 1000 found that pay fell 5.5 percent last year.