Reining in Excessive CEO Pay
Fat cat compensation should play no role in responsible corporate performance at taxpayer-guaranteed banks. Prior to the financial crisis, the CEOs of the giant financial institutions that drove our economy off a cliff received exorbitant compensation packages. Corporate officers should be paid for long-term performance, not short-term illusions. Managers of financial firms receiving federal support should be accountable to taxpayers as well as shareholders.
To rein in excessive CEO pay and restore accountability, Public Citizen supports the following reforms:
- Withhold bonuses for five years to ensure that the gains from any year will be stable.
- Claw back bonuses from results that are later found to be illusory.
- End the taxpayer subsidy for pay above $1 million (as a current loophole allows corporations to do for CEO bonus pay).
- Empower shareholders by giving them a binding vote on executive pay packages.
More Resources on Executive Compensation
- Press Release: Despite State Budget Problems, Weak Economy, Wall Street Execs Reward Themselves Handsomely, February 23, 2011
- Fact Sheet: Executive Compensation: Taking Stock (PDF), February 8, 2011
- Press Release: SEC Executive Pay Rules Are a Key Step, January 25, 2011
- Press Release: ‘Pay Czar’ Kenneth Feinberg Releases Final Executive Compensation Report on Bailed-Out Banks, July 23, 2010
- Press Release: Wall Street Is Giving Outrageous a Bad Name, January 11, 2010
- Press Release: CEOs Who Steered Economy Off a Cliff Received $28.9 Million Average Annual Salary, New Public Citizen Report Shows, December 14, 2009
- Press Release: Obama Pay Cuts a Good Start, but More Is Needed: Congress Should Impose a Windfall Bonus and Profits Tax on Wall Street, October 22, 2009
- Press Release: Wall Street Mocks America; Compensation Estimates Highlight Need for Reforms, October 15, 2009