天价薪酬【外文翻译】.doc

1、原文GLUTTONSATTHEGATEAUTHORHOOD,DUNCANHOWCEOSBECAMEOBSCENELYOVERPAID,ANDWHATCANBEDONEABOUTITITWASABITTERLYCOLDFEBRUARYMORNINGINTORONTOJUSTOVERAYEARAGOWHENGARYHAWTONWITNESSEDAMIRACLEASCEOOFMERITASMUTUALFUNDS,ASOCIALLYRESPONSIBLEINVESTINGCOMPANYINKITCHENER,ONT,HEHADBEENWATCHINGEXECUTIVEPAYLEVELSSURGEFRO

2、MGENEROUSTORIDICULOUSOVERTHELAST15YEARS,ANDHEDHADENOUGHASOF2007,THECOLLECTIVECOMPENSATIONOFCANADAS100BESTPAIDCEOSHADCRASHEDTHROUGHTHEBILLIONDOLLARMARK,ANDAVERAGEINDIVIDUALPAYPACKAGESWERETOPPING10MILLIONAPIECEASAPROFESSIONALINVESTOR,HAWTONKNEWTHATMOSTCEOSWERESIMPLYNOTWORTHTHATKINDOFMONEYHESENTLETTERS

3、TOALLTHEBIGCANADIANBANKSASKINGTHEMTOALLOWSHAREHOLDERSTOVOTEONCEOPAYPACKAGESHESPOKEOUTATSHAREHOLDERMEETINGSANDTALKEDUPTHEISSUETOTHEPRESSATFIRST,HEWASCOMPLETELYIGNOREDBUTHAWTON,AFORMERINVESTMENTBANKERRAISEDWITHSTRONGCHRISTIANVALUES,ISABITOFACRUSADERSOLASTYEAR,HEDECIDEDTOTRYADIFFERENTSTRATEGYHEWOULDINT

4、RODUCEASHAREHOLDERSMOTIONTHAT,IFPASSED,WOULDPAVETHEWAYFORAVOTEONEXECUTIVEPAYWHETHERTHEBANKSLIKEDITORNOTHEKNEWITWASALONGSHOTHEKNEWITWOULDTAKEATLEASTTWOYEARS,QUITEALOTOFMONEYANDINFINITERESERVESOFPATIENCEHEALSOKNEWTHATHISMISSIONWOULDQUITELIKELYMAKEHIMTHEFINANCIALWORLDSDONQUIXOTELONEINVESTORSGENERALLYDO

5、NTSTANDACHANCEWHENTAKINGONENTRENCHEDCORPORATEDIRECTORSBUTLATELYITHASBEGUNTOSEEMTHATMAYBE,JUSTMAYBE,THEEXECUTIVECOMPENSATIONWINDMILLWASREADYFORAFALLASTHERECESSIONDRAGSONANDREALSUFFERINGSETSINAMONGWORKINGCANADIANS,MINDBOGGLINGPAYPACKAGESFORCEOSHAVETRIGGEREDAPALPABLERAGEINTHEPUBLICANDCONSIDERABLEUNEASI

6、NESSAMONGTHELUCKYFEWINTHETOPTIERTHECANADIANCENTREFORPOLICYALTERNATIVESRECENTLYCALCULATEDTHATAFTERABITMORETHANADAYOFWORK,THEAVERAGETOP100CEOHASALREADYEARNEDMORETHANTHEAVERAGECANADIANWORKERWILLEARNINAFULLYEARITSNOTJUSTTHEABSOLUTEAMOUNTSTHATAREHEADSPINNING,ITSTHERATEOFINCREASEBETWEEN1998AND2007,AFTERAC

7、COUNTINGFORINFLATION,THEAVERAGEWEEKLYWAGESANDSALARIESOFREGULARCANADIANWORKERSACTUALLYDECLINEDBYAFEWPERCENTAGEPOINTSBUTREALPAYFORTHEBESTPAIDCEOSINTHECOUNTRYEXPLODEDBYABOUT145PERCENTBY2007,CEOSWEREMAKINGANINCREDIBLE259TIMESTHEPAYOFTHEAVERAGEWORKER“ATWHATPOINTDOESITSTOPMAKINGSENSE“ASKSHAWTON“ISITREALLY

8、POSSIBLETHATSOMEONEISTRULYWORTHTHATAMOUNTISTHEAVERAGECEOREALLYCONTRIBUTING259TIMESMORETOTHECOMPANYTHANTHEAVERAGEWORKER“THATQUESTIONWASVERYMUCHONHISMINDASHAWTONSATINABALLROOMATTHEPLUSHFAIRMONTROYALYORKHOTELINTORONTOFORCIBCS2008ANNUALSHAREHOLDERSMEETINGHEHADAMOTIONONTHEBALLOTASKINGTHEBANKTOGIVESHAREHO

9、LDERSANONBINDINGSAYONEXECUTIVEPAY,ANDIFHEMANAGEDTOGETSIXPERCENTOFTHESHAREHOLDERSTOGOFORIT,HECOULDCOMEBACKWITHASECONDMOTIONIN2009BUTWHENHETABLEDHISPROPOSAL,THEREWASNTEXACTLYAGROUNDSWELLOFSUPPORTNOOTHERINVESTORSCALLEDTOSAYTHEYWEREONSIDE,ANDCIBCSDIRECTORSMADEITCLEARTHEYWEREDEADSETAGAINSTIT“IREMEMBERSIT

10、TINGTHEREANDHAVINGNOIDEAWHATTHELEVELOFSUPPORTFORITWOULDBE,“HAWTONSAYSASHEWAITEDFORTHERESULTS,HETURNEDTOTHEPERSONNEXTTOHIMANDNERVOUSLYASKED,“SO,DOYOUTHINKWELLGETSIXPERCENT“ANDTHENHEHEARDANUMBERTHATFLOOREDHIM45PERCENTOFTHESHAREHOLDERSHADSUPPORTEDHISMOTIONAYEARLATER,HEFLEWTOVANCOUVERFORTHEFOLLOWUPVOTEA

11、TCIBCS2009ANNUALGENERALMEETINGAGAIN,HEENJOYEDSTUNNINGSUCCESSAFULL53PERCENTOFVOTERSSUPPORTEDTHESECONDMOTION,FINALLYALLOWINGSHAREHOLDERSTOHAVEWHATSCALLEDANONBINDING“SAYONPAY“ASHESAYS,TOWINAMOTIONTHATTHEBOARDOPPOSESISUNHEARDOF“ICANTTHINKOFATIMEWHENIVESEENITHAPPENINCANADA,“HESAYS“EVER“CIBCWASJUSTTHEFIRS

12、TTOFALLINLINEWITHINAMONTH,EVERYONEOFCANADASBIGFIVEBANKSHADANNOUNCEDTHATTHEYWOULDALLOWSAYONPAYVOTESLESTTHEYBEFORCEDINTOITBYSHAREHOLDERSSINCETHEN,CORPORATIONSSUCHASTMXGROUPINCANDPOTASHCORPHAVEADOPTEDSIMILARMOTIONSSUNLIFEFINANCIALHASANNOUNCEDITWILLADOPTTHEPOLICYSOON,ASHASBELLCANADAPARENTBCEMANULIFE,WHI

13、CHATFIRSTTOOKAN“OVERMYDEADBODY“APPROACHTOTHEISSUE,SUDDENLYCHANGEDITSMINDACOUPLEOFWEEKSAGOANDWILLALLOWAVOTEONEXECUTIVEPAYNEXTYEARITSGOTTENTOTHEPOINTWHEREEVENTHECEOSTHEMSELVESAREADMITTINGTHATTHEYMAKETOOMUCHFORYEARS,BOARDSHAVEDEFENDEDTHEIRSKYHIGHSALARIESBYARGUINGTHATTHEYREBASEDONCOMPLEXFORMULASTIEDTOTH

14、EPERFORMANCEOFTHECOMPANYBUTEARLIERTHISYEAR,THEBANKBOSSESLOOKEDAROUNDATTHEFACESOFANGRYSHAREHOLDERSANDTHREWALLTHATOUTTHEWINDOW,REJECTINGTHEBOARDSCAREFULLYENGINEEREDFIGURESANDSETTINGTHEIROWNPAYATMUCHLOWERLEVELSDOMINICDALESSANDRO,MANULIFESCEO,DIDASIMILARABOUTFACEJUSTWEEKSAGOWHENCRITICSFIRSTASKEDHIMTOCON

15、SIDERRETURNINGSOMEOFTHE15MILLIONPAYOUTHEWASTOGETFORHISLASTFIVEMONTHSOFWORKTHISYEARBEFOREHERETIRES,HESAID,“IMNOTGIVENTOSELFSERVINGGESTURES“THEN,JUSTWEEKSAGO,HESUDDENLYCHANGEDHISTUNE,ANNOUNCINGTHATHELLDEFER80PERCENTOFTHATPAYINASCHEMETHATCOULDSEEHIMLOSEITALTOGETHERUNLESSMANULIFESSTOCK,WHICHHASBEENCUTIN

16、HALFSINCELASTYEAR,REBOUNDSCONSIDERABLYDIANEURQUHART,ANINDEPENDENTFINANCIALANALYSTANDSHAREHOLDERADVOCATEBASEDINMISSISSAUGA,ONT,SAYSTHATCEOSSUCHASDALESSANDROAREGENUINELYSURPRISEDATTHEOUTRAGETHEYPROVOKE,BECAUSETHEYTRULYBELIEVETHEYDESERVETHEIRWINDFALLS“ANINTENSEGREEDHASSEEPEDINTOTHEUPPERECHELONSFORCORPO

17、RATESOCIETY,ANDTHESECEOSHAVELOSTTOUCHWITHREALITY,“SHESAYS“THEYDOTHINKTHEYREENTITLED,ANDALLTHEPEOPLETHATTHEYSURROUNDTHEMSELVESWITHAREOFASIMILARMINDSETSOTHERESNOONETHERETOPUTTHEBRAKESONTHATPSYCHOLOGY“STILL,SHEADDS,“THEREARENOWSOMESLIVERSOFHOPETHATPEOPLEAREBEGINNINGTOPUSHBACK“THEQUESTIONISWHETHERTHEIMP

18、ULSEFORCHANGEWILLLASTINVESTORSHAVEGRUMBLEDABOUTFATEXECUTIVEPAYCHEQUESFORYEARS,EVENASTHEPAYOUTSHAVEACCELERATEDBUTTHESEARENOTTYPICALTIMES,ANDTHANKSTOOUTRAGEOUSBONUSESGIVENTOEXECUTIVESATAIG,FANNIEMAE,ANDOTHERLARGEAMERICANFIRMS,EXECUTIVEPAYISNOWAPOLITICALISSUEONTHEINTERNATIONALSTAGEINTHEUS,PRESIDENTBARA

19、CKOBAMAISTALKINGOFPLACINGCAPSONEXECUTIVEPAY,WHILESOMEECONOMISTSAREEVENBLAMINGEXECUTIVEGREEDFORFUELLINGTHEWORLDWIDEECONOMICMELTDOWNAFEWSCATTEREDDONQUIXOTESMAYHAVETRIGGEREDAGLOBALREFORMMOVEMENT,AIMEDATTURNINGBACKTHECLOCKONEXECUTIVEPAYBYDECADESEXECUTIVESHAVEALWAYSBEENWELLCOMPENSATED,BUTTHEERAOFCELEBRIT

20、YCEOSANDOBSCENEWEALTHISARELATIVELYNEWPHENOMENONIRONICALLY,THEEXPLOSIVEINFLATIONINEXECUTIVEPAYCANBETRACEDTOTWOREGULATORYCHANGESINTRODUCEDALMOST15YEARSAGO,WITHTHEAIMOFPROTECTINGINVESTORS,SAYSCHRISTOPHERCHEN,ACOMPENSATIONCONSULTANTWITHTHEHAYGROUPTHEFIRSTCHANGEWASTOBEGINPUBLICLYDISCLOSINGEXECUTIVEPAYITU

21、SEDTOBETHATCEOPAYRATESWEREKEPTUNDERWRAPS,SOCONSULTANTSLIKECHENWOULDMAKEEDUCATEDGUESSESONWHATOTHERCEOSWEREMAKING,THENADVISETHEIRCLIENTSONANAPPROPRIATERATE“ITWASABLACKBOXART,“HESAYSBUTINTHEMID90S,ASSTOCKPRICESSTARTEDTOBALLOON,SODIDCEOPAYINANEFFORTTOKEEPITUNDERCONTROL,REGULATORSINTHEUSANDCANADABEGANDEM

22、ANDINGTHATCOMPANIESDISCLOSEHOWMUCHTOPEXECUTIVESWEREPOCKETINGSOONAFTERTHAT,THEUSALSOREMOVEDTHETAXEXEMPTSTATUSOFEXECUTIVEPAYOVERUS1MILLIONBOTHMOVESWEREINTENDEDTOCURBSKYROCKETINGPAY,BUTTHEYACHIEVEDPRECISELYTHEOPPOSITEEFFECTMAKINGCEOPAYPUBLICLEDTOTHE“LAKEWOBEGONEFFECT,“SAYSDAVIDLYNN,AUSPARTNERATINTERNAT

23、IONALLAWFIRMMORRISONFOERSTERNAMEDAFTERTHEFICTITIOUSTOWNOFLAKEWOBEGONFROMTHEAMERICANRADIOSERIESAPRAIRIEHOMECOMPANION,WHERE“ALLTHEWOMENARESTRONG,ALLTHEMENAREGOODLOOKING,ANDALLTHECHILDRENAREABOVEAVERAGE,“THISEFFECTDESCRIBESTHENATURALHUMANTENDENCYTORATEOURSELVESABOVETHEPACKSINCETHEBOARDSOFDIRECTORSATMOS

24、TCOMPANIESLIKETOTHINKTHATTHEIRCEOIS“ABOVEAVERAGE,“ITONLYSEEMEDFITTINGTHATTHEIRCEOSPAYSHOULDBEABOVEAVERAGETOOUNFORTUNATELY,WHENEVERYCOMPANYPAYSITSCEOANABOVEAVERAGESALARY,THATAVERAGESTARTSTOMOVEUPINAHURRYINOTHERWORDS,SAYSCHEN,“THERISINGTIDELIFTEDALLBOATS“ACCORDINGTOTHEINTERNATIONALINSTITUTEFORLABOURST

25、UDIES,INJUSTTHEFOURYEARSBETWEEN2003AND2007,CEOPAYINTHEUSSHOTUPBY45PERCENTAHUGEAMOUNTOFTHATINFLATIONWASROOTEDINTHERISEOFSTOCKOPTIONSWHENTHEGOVERNMENTREMOVEDTHETAXEXEMPTSTATUSOFCASHPAYOUTSOVERUS1MILLION,CORPORATEBOARDSSHIFTEDTHEMAJORITYOFEXECUTIVEPAYFROMCASHTOOPTIONSTHISWASINITIALLYSEENASAGOODTHINGIFA

26、COMPANYDIDWELL,THENITSSTOCKPRICEWOULDGOUPANDTHEOPTIONSWOULDBEWORTHMOREBUTWHILEITSOUNDEDGOODINTHEORY,LYNNSAYSTHATINPRACTICEITLEDTOCEOSPUMPINGTHENEXTQUARTERSRESULTSATALLCOSTS,EVENIFITMEANTFUDGINGTHENUMBERS“ITHADTHEUNFORTUNATEEFFECTOFCAUSINGSCANDALSLIKEWORLDCOMANDENRONANDALLTHESEMAJORMELTDOWNSTHATRESUL

27、TEDFROMEXECUTIVESBEINGFOCUSEDONTRYINGTOBOOSTTHEIRSTOCKPRICE,“HESAYSASCOMPANIESMOVEDFROMCASHCOMPENSATIONTOINCREASINGLYELABORATEPAYSTRUCTURES,THETRUELEVELOFPAYBECAMEEVERMOREDIFFICULTTOGRASPTODAYSPACKAGESGENERALLYINCLUDEBASEPAY,STOCKOPTIONS,RESTRICTEDSHARES,ANNUALBONUSES,SPECIALBONUSES,GOLDENHANDSHAKES

28、,GOLDENPARACHUTESANDACCELERATEDSUPPLEMENTALPENSIONSLYNNSAYSTHATSOMETIMESNOTEVENTHEBOARDSOFDIRECTORSWHOSETTHEPAYLEVELSKNOWWHATTHEYREONTHEHOOKFOR“COMPENSATIONDECISIONSARETYPICALLYMADEPIECEMEAL,“HESAYS“ATONEMEETINGTHEYMIGHTMAKETHEDECISIONSASTOEQUITYGRANTS,ANDTHENSIXMONTHSLATERTHEYMIGHTMAKETHEDECISIONSO

29、NPERFORMANCEGOALSFORANINCENTIVEPLAN,ANDTHENATANOTHERMEETING,THEYLLDISCUSSSALARY“ATEVERYONEOFTHOSEMEETINGS,THETOTALPAYPACKAGETENDSTOGETFATTERTHESHAREHOLDERSARESUPPOSEDTOACTASTHESAFETYVALVEONALLOFTHISIFEXECUTIVEPAYGETSOUTOFHAND,THENASTHEULTIMATEOWNERSOFTHECOMPANY,SHAREHOLDERSHAVETHEPOWERTOVOTEOUTTHEBO

30、ARDOFDIRECTORSHOWEVER,STEPHENGRIGGS,EXECUTIVEDIRECTOROFTHECANADIANCOALITIONFORGOODGOVERNANCECCGG,WHICHREPRESENTSINSTITUTIONALINVESTORSCONTROLLINGABOUT13TRILLION,SAYSTHESYSTEMFORELECTINGTHOSEBOARDSDOESNTRESEMBLEANYTHINGMOSTPEOPLEWOULDCALLDEMOCRACYUNLESSYOUHAPPENTOBEKIMJONGIL“THEMAINPROBLEMISTHATTHEVA

31、STMAJORITYOFBOARDSWILLHAVEANOMINATINGCOMMITTEETHATSETSASLATEOFDIRECTORS,“HESAYS“ANDSHAREHOLDERSTHENEITHERVOTEFORTHATSLATEINITSENTIRETY,ORTHEIRONLYOTHERLEGALOPTIONISTOWITHHOLDTHEIRVOTESOYOUCANHAVEASCENARIOWHEREANOMINATINGCOMMITTEEPUTSWHOEVERTHEYWANTONTOTHATSLATE,ANDASLONGASASINGLESHAREHOLDERVOTESFORT

32、HATSLATEEVENIFYOUHAVE999PERCENTOFSHAREHOLDERSWITHHOLDINGTHEIRVOTESTHENTHATSLATEISSTILLELECTED“ITWOULDBELIKEINTRODUCINGNEWRULESFOROURNEXTFEDERALELECTIONTHATSTATEYOUCANEITHERVOTEFORSTEPHENHARPER,ORNOTATALLANDASLONGASONEPERSONVOTESFORHIM,HEWINSTHISISVEXINGENOUGHWHENACOMPANYISPERFORMINGWELL,BUTINRECENTY

33、EARSTHEREHAVEBEENSEVERALEXAMPLESINWHICHTOPEXECUTIVESHAVEWALKEDAWAYWITHMASSIVEPAYOUTSDESPITEMEDIOCRETOPOORRESULTSWHENMICHAELSABIASTEPPEDDOWNASCEOOFBCE,HISPLANTOSELLTHECOMPANYTOPRIVATEINVESTORSHADFALLENAPARTANDTHESTOCKWASPRETTYMUCHRIGHTWHEREITWASWHENHETOOKTHEJOBSIXYEARSEARLIERYETHESTILLWALKEDAWAYWITHA

34、21MILLIONPACKAGEROBERTPRICHARDISLEAVINGTORSTARNEXTWEEKWITHALMOST10MILLION,EVENTHOUGHTHECOMPANYSSTOCKHASBEENCUTBYTWOTHIRDSUNDERHISWATCHHYDROONECEOTOMPARKINSONRECEIVEDMORETHAN48MILLIONONHISWAYOUTTHEDOOR,EVENTHOUGHHELEFTUNDERADARKCLOUDFOLLOWINGASCATHINGREPORTONTHECOMPANYSBILLINGPRACTICESBYONTARIOSAUDIT

35、ORGENERALJUSTLASTWEEK,THEEXECUTIVESWHOSITONOTTAWASPUBLICSECTORPENSIONINVESTMENTBOARD,WHICHHASLOSTBILLIONSOFDOLLARSOFFEDERALGOVERNMENTWORKERSPENSIONMONEY,DECLAREDTHATTHEYWOULDNOTRULEOUTAWARDINGTHEMSELVESHUGEBONUSESFORTHEIRSADACCOMPLISHMENTGIVENTHATCEOSANDDIRECTORSMAKETHERULES,ITSHOULDNTCOMEASASHOCKTH

36、ATTHEYVESTACKEDTHEDECKINTHEIRFAVOURBUTWHILETHISUSEDTOBEAPROBLEMJUSTFORSHAREHOLDERS,ITSINCREASINGLYBECOMINGAPROBLEMFOREVERYONEMANYARENOWSAYINGTHATTHERECKLESSPURSUITOFSHORTTERMCORPORATEPROFITSOVERTHEPASTFEWYEARSMUCHOFITFUELLEDBYOUTLANDISHEXECUTIVEBONUSESANDSTOCKOPTIONPACKAGESISLARGELYRESPONSIBLEFORTHE

37、CRISISTHATSCRIPPLINGTHEGLOBALECONOMYATTHERECENTG20SUMMITINLONDON,THEFINANCIALSTABILITYFORUM,WHICHINCLUDESCENTRALBANKERSANDOTHERMAJORNATIONALFINANCIALAUTHORITIESFROMAROUNDTHEWORLD,DELIVEREDASTINGINGREBUKEOFTHEPREVAILINGCOMPENSATIONCULTUREAMONGCEOS,ANDURGEDSWEEPINGREFORMSTOREININRUNAWAYPAYLUISNAVAS,WH

38、ORUNSINDEPENDENTCOMPENSATIONADVISORYFIRMGLOBALGOVERNANCEINTORONTO,SAYSTHATIFTHEYRENOTCAREFUL,CEOSCOULDSOONFINDTHEGOVERNMENTGETTINGINVOLVED“FINALLY,ITLOOKSLIKETHEYWANTTOREGULATETHECOMPENSATIONPROCESSANDCREATEACCOUNTABILITY,“HESAYS“THEYVEACTUALLYCOMEOUTWITHWORLDWIDEREGULATIONREGARDINGEXECUTIVECOMPENSA

39、TION,ANDCANADASHEADOFTHEOFFICEOFTHESUPERINTENDENTOFFINANCIALINSTITUTIONSWASPARTOFIT“INITSOWNFORMALANDDIPLOMATICWAY,THEFINANCIALSTABILITYFORUMEXPRESSESTHEVERYSAMEEXASPERATIONTHATMILLIONSOFANGRYWORKERSHAVEBEENEXPRESSINGFORYEARSITSNOTRIGHTTHATCEOSCANRATCHETUPTHEIRSALARYWHENTIMESAREGOOD,ANDTHENKEEPTHEIR

40、BONUSESWHENTIMESAREBADBUTITSMORETHANUNJUST,SAYSTHEFORUM,ITSDANGEROUSAFTERALL,IFYOUGOTHUGEBONUSESWHENYOURSTOCKWENTUP,BUTLOSTNOTHINGWHENYOURSTOCKTANKED,YOUDBETTHEHOUSEEVERYTIMEASTHEREPORTPUTSIT,“COMPENSATIONMUSTBESYMMETRICWITHRISKOUTCOMES“THE“ASYMMETRYOFBONUSPRACTICE,“ITSAYS,“ENCOURAGESTAKINGOFEXCESSI

41、VERISK“NAVAS,GRIGGSANDHAWTONALLAGREETHATGIVENTHECURRENTSTATEOFECONOMICAFFAIRS,THEPOLITICALANDSOCIALWILLISFINALLYHERETOMAKEREAL,LASTINGCHANGESTOEXECUTIVEPAYTHEMOREDIFFICULTQUESTIONISHOWTHEFINANCIALSTABILITYFORUMPLANISAGOODSTART,ANDNAVASAGREESWITHMANYOFITSRECOMMENDATIONSHESPARTICULARLYKEENONREGULATING

42、FIRMSSUCHASHISOWN,WHICHADVISEBOARDSONSETTINGEXECUTIVEPAYRIGHTNOW,ANYONECANPUTOUTASHINGLEANDSTARTADVISINGBOARDSFOR700ANHOUR,ANDTHEPROFESSIONISKNOWNFORITSYESMEN,WHOWEREFAMOUSLYMOCKEDBYWARRENBUFFETTWHENHEDESCRIBEDTHEFICTITIOUSCONSULTINGFIRMOF“RATCHET,RATCHETANDBINGO“AFEWYEARSAGOASNAVASSAYS,“AUDITORS,DO

43、CTORSANDLAWYERSAREMONITOREDSOWHYNOTUS“EDWOOLARD,THEFORMERCEOOFDUPONTANDPASTCHAIROFTHENEWYORKSTOCKEXCHANGESCOMPENSATIONCOMMITTEE,ALSOHASAFEWIDEASINASPEECHTOCORPORATEDIRECTORSAFEWYEARSAGO,HESETOUTABLUNTPLANFORADDRESSINGANISSUETHAT“HASERODEDTHETRUSTANDCONFIDENCEINAMERICANBUSINESSLEADERS“INHISSPEECH,HEA

44、TTACKEDTHETIMEWORNEXCUSESGIVENFORLUSHPAYPACKAGESONEBYONECEOCOMPENSATIONISDRIVENBYCOMPETITION“BULL,“HESAID,ARGUINGTHATDIRECTORSNEEDEDTOTIECEOPAYTOTHEPAYRATESOFOTHEREXECUTIVESWITHINACOMPANY,RATHERTHANCOMPETINGFORHIGHERPAYWITHTHECEOSOFOTHERFIRMSCOMPENSATIONCOMMITTEESAREINDEPENDENT“DOUBLEBULL,“HERETORTE

45、D,SUGGESTINGTHATTHECOMMITTEESSHOULDDEALONLYWITHOUTSIDECONSULTANTSWHOARENOTALLOWEDTOTALKTOANYONEATTHEFIRM,INCLUDINGTHECEOWHATGOTHIMTHEMOSTRILEDUPTHOUGH,WASTHEIDEAOFPAYINGCEOSHUGESEVERANCEPACKAGESFORFAILING“NOONEELSEGETSPAIDEXCESSIVELYWHENTHEYFAIL,“HESAIDPOINTEDLY“THEYGETFIRED“NAVASSAYSITSALLGOTTOCOME

46、BACKTOACCOUNTABILITYTHESIMPLETRUTHISTHATMANYCEOSWILLSETTHEIRPAYASHIGHASTHEYCAN,UNLESSSOMEONESTOPSTHEMTHATSWHERETHESHAREHOLDERSARESUPPOSEDTOCOMEIN,WHICHISWHYGARYHAWTONSMISSIONTOGIVETHEMAVOICEISSOIMPORTANTHAWTONSSAYONPAYMOVEMENTWILLHELPBECAUSE,WHILETHEVOTESARENONBINDING,SUCHVOTESWONTALLOWTHEBOARDSTOMA

47、INTAINTHEILLUSIONTHATSHAREHOLDERSAREOKAYWITHOUTLANDISHPAYPACKAGESINTHEUK,WHERESAYONPAYHASBEENSTANDARDFORYEARS,NAVASSAYSTHEVOTESHAVENTLOWEREDCEOPAYRATESACROSSTHEBOARD,BUTTHEYHAVEHELPEDTOSOLVETHEMOSTGALLINGPROBLEMBADCEOSWHOSTILLREWARDTHEMSELVESWITHHUGEBONUSESSOFAR,MERITASANDOTHERINVESTMENTFIRMSHAVEMAN

48、AGEDTOPRESSUREMORETHANADOZENBIGBLUECHIPCOMPANIESINTOALLOWINGSAYONPAYVOTESATSHAREHOLDERMEETINGSHAWTONSNEXTSTEP,HESAYS,ISTOCONVINCETHECANADIANSECURITIESADMINISTRATORSTOENACTNEWREGULATIONSTHATWOULDFORCEEVERYPUBLICCOMPANYINCANADATOADOPTSAYONPAYTHESEDAYSACTIVISTSHAREHOLDERSLIKEHAWTONARELOOKINGLESSANDLESS

49、LIKEDONQUIXOTES,ANDMOREANDMORELIKETRAILBLAZERSHAWTONSAYSHEWASTAUGHTLONGAGOTHATUNBRIDLEDGREEDINEVITABLYLEADSTODISASTER,ANDWHILETHATKINDOFTHINKINGSEEMEDALMOSTHERETICALAFEWYEARSAGO,TODAYITSHARDTOARGUEWITHHAWTONSTILLBELIEVESINCAPITALISM,HESAYSHESTILLBELIEVESINCOMPENSATINGEXECUTIVESWELLFORAJOBWELLDONE,ANDHEBELIEVESINTHEFREEMARKET“BUTTHEREHASTOBEBALANCE,TOOITSNOTJUSTHOWMUCHMONEYYOUMAKEITSHOWYOUMAKEIT“MICHAELSABIA,BCETHEPACKAGE21MILLIONHOWDIDHEEARNITWHENSABIATOOKOVERBCEIN2002,ITSSTOCKWASSTRUGGLINGINTHEMID20RANGEHEWASHIREDTOFIXTHINGS,BUTWHE