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
