When Scott Paper's directors walked into the boardroom in mid-July, they collected their usual $1,000-a-meeting fee. But after an impassioned speech by new Chairman Albert Dunlap on the need to link pay to performance, all returned the checks. In exchange for 1,000 shares of Scott stock a year, now trading near 65, Dunlap persuaded the nine outside directors to dump a lucrative basket of goodies, including meeting fees, a $20,000 annual retainer, and retirement benefits. The decision was made public on Aug. 30. Dunlap, who has shaken up the sleepy company since arriving in April of this year, contends that "lots of boards are even worse than this. It's outrageous."
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