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Is Exec Compensation the next Sarbanes-Oxley?

Is Exec Compensation the next Sarbanes-Oxley?

by Rick Turoczy on July 3, 2006

According to a recent article the subject of executive compensation is about to be the next major corporate governance topic. The lack of moderation demonstrated by super sized compensation packages has caught the Securities Exchange Commission’s attention and has teed up the issue of reform.

“Whatever the market can bear” is an oft heard phrase; but, a market with imperfect information due to incomplete disclosures means that shareholders are paying out fatter paychecks than they bargained for. Royal compensation packages that bear no relationship to the company’s actual performance once again point to the failure of independent directors.

Is Exec Compensation the next Sarbanes-Oxley?

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