The latest reporting, opinion and research on executive compensation. We don’t necessarily agree with it all, but we provide it here for consideration.

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Week of
November 9, 2015

Quick Picks

CEO Pay Ratio Rule in the News

In a recent Forbes article, Glenn Lammi of the Washington Legal Foundation suggests the finalized CEO Pay Ratio rule may lead to unintended consequences that would be counterproductive to advancing pay equity or boosting employee morale. Among other things, he argues that the rule will discourage businesses from hiring lower-skilled workers willing to forego higher wages for employment opportunities. Lisa Botter of Agenda explains that the ratio of CEO compensation to the other named executive officers may be a far more meaningful measure than the CEO to median worker ratio. The article contends that institutional shareholders care more about pay equity within the executive group. Both authors agree that there may be more valuable measures than the Pay Ratio rule in its current form.

How Much to Pay a Director? There’s No Clear Answer | The New York Times (subscription required) | November 10, 2015

Controversy and debate over director compensation shows no signs of slowing down. Some argue that directors, who largely set their own compensation, are paying themselves too much. Others, according to law professor Steven Solomon, say that directors are actually underpaid, given they are required to put in more work than ever before and can be held liable when things go wrong. In the future, boards will likely continue butting heads with shareholders both in the courtroom and outside it. Read more

Compensation Trends + Developments

Regulation, Legislation + Governance

From Critics + Commentators