Executive Compensation: How Much to Pay? - NY Times - 2 Jan 2010

The Unstoppable March

of Executive Pay

Summary:
Governments abroad set their sights on executive pay as British officials announced a one-time tax on bankers' bonuses and French officials indicated that they planned to follow suit.

Meanwhile, Goldman Sachs, still trying to quell about public outcry about its bonuses, announced that its 30 top executives would receive restricted stock, rather than cash.

In recent weeks, government-imposed limits on executive pay figured
into developments at two big companies that received major bailouts,
Bank of America and General Motors. The bank's plan to repay $45 billion in loans should make it easier for it to recruit a new chief executive, but G.M. may have a problem attracting top talent.

Facing a public blacklash, Wall Street firms launched a public relations campaign
last month in an effort to tamp down the outcry over excessive pay. But
it has not been easy. A decision by Goldman Sachs to "apologize" for
its action and donate $500 million to small businesses was met in some
quarters with derision.

As year-end bonuses come due, executive payouts are reaching pre-collapse levels.

A Washington lawyer, Kenneth R. Feinberg, was appointed this summer by
the Obama Administration to oversee the
compensation of employees at seven companies that received assistance
after last year's financial meltdown: the American International Group,
Citigroup, Bank
of America, General Motors, Chrysler and the financing arms of the two
automakers.

Meanwhile, Congress is considering legislation that would let
shareholders vote on pay
levels and require public companies to strengthen the independence of
board panels that set executive pay. The legislative debate pits the
public's outrage at skyrocketing pay packages against business groups
who contend that strong financial incentives are needed if companies
are to retain the most talented leaders. 

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