{"id":3066,"date":"2008-12-29T15:01:11","date_gmt":"2008-12-29T15:01:11","guid":{"rendered":"http:\/\/www.corporate-eye.com\/?p=3066"},"modified":"2020-07-27T14:51:50","modified_gmt":"2020-07-27T13:51:50","slug":"ethics-and-executive-compensation","status":"publish","type":"post","link":"https:\/\/www.corporate-eye.com\/main\/ethics-and-executive-compensation\/","title":{"rendered":"Ethics And Executive Compensation"},"content":{"rendered":"

Recent headlines have chronicled the ubiquitous debate on Executive Compensation and its relationship to the financial crisis. This debate is not new and has been going on since the 1990’s. However, the current financial crisis places a new focus on the topic and has revealed some exorbitant practices. A recent Wall Street Journal article by noted management guru Gary Hamel indicates —<\/p>\n

We can hope, though, that the current crisis will bring leaders to the fore who have the virtues we have always sought in those who manage our nation’s financial institutions: honesty, humility, prudence, foresight, and a keen sense of stewardship. It is these qualities, more than any amount of regulation or recapitalization that will rebuild the foundations of America’s financial system. <\/p>\n

WSJ, October2, 2008<\/p><\/blockquote>\n

Executive Compensation is a key Corporate Governance issue and Boards have\u00a0been, for the most part, derelict in their responsibilities to oversee compensation and ensure ethical practices. For example, in a Society For Human Resources 2006 Survey,\u00a0Ethics Compliance accounted for only 10% in factors determining cash bonuses.
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We are in the midst of a tectonic-plate movement in the financial world that is shaking the \u2018real’ world quite dramatically. My purpose here is not to review the causes and potential consequences of our current situation, but to explore the possibility that once again, in the world of publicly traded companies, boards of directors have let us down.\u00a0<\/p>\n

DAVID BEATTY\u00a0Globe and Mail Update\u00a0December 9, 2008 at 6:00 AM EST<\/p><\/blockquote>\n

Well, not all Boards “let us down”. <\/p>\n

Here are a few companies that consider ethics factors in determining executive compensation —<\/p>\n