Oversight of executive pay: Business as usual may lead to personal liability for directors

Miller, Lee E.
October 2003
NACD Directorship;Oct2003, Vol. 29 Issue 9, p11
Explores the liability of corporate directors in executive pay oversight. Consequences of the failure of American Airlines to disclose its compensation arrangements; Flaws in executive compensation systems; Examples of court cases involving compensation decisions.


Related Articles

  • Institutional investors are dissatisfied with U.S. executive pay.  // Corporate Board;Mar/Apr2006, Vol. 27 Issue 157, p28 

    The article reports on the dissatisfaction felt by institutional investors over the way many companies determine executive pay packages in the U.S. According to a study conducted by Watson Wyatt Worldwide, 90 percent of investors think the system has overpaid executives, and 85 percent say it...

  • Using Restricted Exec Bonus Arrangements. Rowles, Matthew L. // National Underwriter / Life & Health Financial Services;6/27/2005, Vol. 109 Issue 25, p27 

    Delves into the different component of a restricted executive bonus arrangement which allows an employer to stay in control and provide the company with income tax deduction. Agreement between employers and executives to add personal life insurance protection; Payment of annual premiums;...

  • Critics Blast UC Over Salary Hikes for Top Execs. Jones, Rene'e Beasley // San Diego Business Journal;5/31/2004, Vol. 25 Issue 22, p3 

    Reports on the outrage of the University of California (UC) employees regarding the increase in pay of three administrators in the midst of a year-long state budget crisis in California. Argument of UC officials on the reason why the university approved the increase of salary; Statement of...

  • CORPORATE OBJECTIVES AND THE EXECUTIVE COMPENSATION PACKAGE. Ellig, Bruce R. // Industrial Management;Sep73, Vol. 15 Issue 9, p5 

    Discusses corporate compensation packages for executive in light of the corporation's objectives. Compensations which should reflect the amount of risk for a commensurate reward; Steps to identifying corporate needs which include considering the industry, the company's relationship to its...

  • Corporate governance and the information gap: The use of financial and non-financial information in executive compensation. Schiehll, Eduardo; Andre, Paul // Ivey Business Journal;Jul/Aug2003, Vol. 67 Issue 6, p1 

    Describes the process involved in the design of compensation systems that are linked to corporate governance in order to align senior managers' decisions with shareholders' interests. Practices that companies use to reward executives; Guidelines in choosing performance measures; Effect of...

  • Executive Compensation: The Alignment Myth.  // NACD Directorship;Jan/Feb2013, Vol. 39 Issue 1, p70 

    The author discusses pay for performance programs proposed by the shareholders of U.S. company board of directors about effective compensation system for executives in a corporate. The autos are critical of assessments through which the compensations are provided including payment techniques,...

  • Roundtable Survey Finds Clear Trends. Marshall, Jeffrey; Heffes, Ellen M. // Financial Executive;Jun2006, Vol. 22 Issue 5, p10 

    The article presents the results of a survey of 160 chief executives regarding compensation and corporate governance among companies in the United States. Most executives support performance based compensation for upper management. Additional topics include a growing demand for independent...

  • Gauging executive salaries: How much, to whom, for what? Meredith, David R. // Management Review;Oct78, Vol. 67 Issue 10, p47 

    Advises corporate boards on setting executive compensation in the U.S. Consideration of the company's overall strategy; Company compensation philosophy; Measurement of executive performance; Analysis and application of performance standards; Accountability of board compensation committee...

  • Questions Compensation Committees Must Answer. Johnson, Keith L.; Thamotheram, Raj // Corporate Board;Mar/Apr2006, Vol. 27 Issue 157, p12 

    The article focuses on issues compensation committees must answer for both the quantity and the quality of the pay plans they approve for executives in the U.S. It is reported that the proposal of new rules by the Securities and Exchange Commission demands greater compensation transparency. In...


Read the Article

Other Topics