The SEC Claws Back
by Dan Hurson, senior partner in The Hurson Law Firm LLP, in Washington, D.C. The case for strict enforcement of Sarbanes-Oxley Section 304 requiring CEO payback after restatements caused by “misconduct.”
by Dan Hurson, senior partner in The Hurson Law Firm LLP, in Washington, D.C. The case for strict enforcement of Sarbanes-Oxley Section 304 requiring CEO payback after restatements caused by “misconduct.”
With so much attention being paid to how much executives are making these days, and the government taking unprecedented steps to control what it deems outlandish or unwarranted compensation, a recent posting at CNNMoney.com is quite interesting. The post outlines the ten highest paid executive officers. Here are the top five, including how much the person earned in 2008.
Executive compensation, previously the domain of boards and shareholders, is now under greater governmental control. Yesterday, the U.S. government announced aggressive regulations on executive compensation at banks and Wall Street firms.
There is more chatter about executive pay and bonuses today, as AIG’s pay culture is back in the news due to today’s hearing on Capitol Hill.
The House Committee on Oversight and Reform has convened today’s hearing in response to a government audit that was released on Wednesday.
As we wind down another week, some informative links discussing the risks of bonus guarantees and a few different perspectives on business ethics.
Late last week the SEC announced a series of proposed rule changes that it believes will help the agency better protect shareholders. Let’s do a quick rundown of the proposed changes, which currently are published in the Federal Register and open for comment for 60 days.
It appears that there is relatively little connection between business ethics and corporate compensation, according to a recent survey conducted by the Society of Corporate Compliance and Ethics (SCCE) and its sister organization, the HCCA.
by John Russell — Managing Editor of Ethical Corporation
Public outrage at the rewards given to failed bosses could soon force boards to change the way executives are paid. Support is growing among shareholders for measures to stop bonus payments to directors who have driven their companies to the edge. Bonus clawback provisions are a way to do this.
Corporate directors have come under fire in recent months in wake of executive pay controversies at companies like Merrill Lynch and AIG. Bailout funding has also increased the pressure on corporate boards to responsibly allocate executive compensation.
PG&E Corporation has announced that beginning in 2010, shareholders will receive an advisory vote each year on executive compensation. These votes will then be taken into account by PG&E’s board when determining future executive compensation policies and levels.
