How To Figure What To Pay The Boss

Hooray for "Executive Pay" (Cover Story, Mar. 30). I am glad you had the courage to stand up and say what screamed out to be said.

I have been accumulating stocks for 40 years. I have always voted every proxy--and have yet to vote for a stock-option plan or any form of so-called "incentive" plan. I have observed that no corporation has yet offered an "incentive" plan for shareholders.

Ernest L. Arbuckle

Haines City, Fla.

Your article on Tony O'Reilly shows that you have jumped on the bandwagon with the liberal media in calling for--and even designing reform of--top-executive compensation.

And you say, in a nutshell, why O'Reilly, whose base salary is $514,000, has received such a handsome payoff: "Heinz Co. was worth $900 million in 1980, and it's worth $10 billion today--with the same number of shares issued, O'Reilly boasts." And rightly so.

And instead of trying to impose formulas and/or caps on top executive pay, why don't you turn your attention to sports figures? What do they really contribute to the lives of shareholders and employees?

James P. Shenfield


Before it's here, it's on the Bloomberg Terminal.