Sunday, April 29, 2007

Executive Compensation

Triggered by this article:

The AT&T chief executive will stand before the telephone company’s shareholders at its annual meeting in San Antonio today and undoubtedly face questions from shareholders about that $158 million retirement package that’s been cropping up in news reports lately.

Some key guidelines on deciding executive pay:

1. 80% of bonus to be tied to 2 year stock performance.
2. Base salary capped to 10X lowest employee pay at the country where HQ resides.

Only then can one avoid discussions about inflated pay...


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