© D.L. Crumbley
Lavish Executive Pay
Many of the companies indicted by the SEC after Enron had one thing in common: CEOs were making about 75% above their peers.
The common thread among the companies with the worst corporate governance is richly compensated top executives, as per the Corporate Library, Portland, Maine governance-research firm. Hefty pay checks and perks to current or former chief executives.
Poor BODs have in common: an inability to say no to current or former chief executives.
Source: Monica Langley, “Big Companies Get Low Marks for Lavish Executive Pay,” Wall Street J., June 9, 2003, p. C-1.