Wednesday, May 07, 2003
Dan Ackman, Forbes,
Dan Ackman, Forbes,
Dick Grasso And The Company He Keeps
NEW YORK - The reason chief-executive pay has spun so wildly out of control isn't hard to understand: CEO pay is determined by boards of directors--many of whom are also CEOs or aspiring CEOs who, guided by compensation consultants, seek to have their boss paid at least as well as the next boss. When the boss next door earns more, so too must their boss. It's a one-way ratchet.
Enter Dick Grasso, chairman of the New York Stock Exchange. He received a 2002 pay package valued at more than $10 million, according to The Wall Street Journal. This package came despite an economic downturn, declining share prices, weakening earnings at the Big Board itself and mini-scandals in which several NYSE board members were forced to resign.
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Posted by Editor on 05/07/03 at 07:42 AM •
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