The clamor for real change in executive pay has reached new heights. Traditional yearly exclamations of shock and awe over ever-larger paychecks, golden parachutes and special perks have been replaced by public outrage.
The general public, shareholders and regulatory authorities are united in their demand for real reform in executive pay. The new reality is that we must solicit outside input and involvement in the design and implementation of executive compensation programs and more changes likely will follow. Shareholders are demanding so-called “say on pay.” The SEC is increasingly insistent on full disclosure of all matters related to pay. Outside shareholder and stakeholder advocate groups more frequently render opinions about executive pay. Terms of the Wall Street bailout include the involvement of regulators as firms take advantage of the rescue plan.