Getting a Handle on CEO Severance Pay
Many executives receive lavish compensation after a mediocre term of service. But boards are gaining the independence to ask tough questions
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Boards of directors are making progress in coming to grips with linking the pay of CEOs to their actual performance, but severance pay for CEOs (, 7/3/08) remains a major issue, says David Swinford, president and CEO of Pearl Meyer & Partners, a New York executive compensation consultancy. And the next Administration, whether a Republican or Democrat is in the White House, will adopt "say on pay" legislation, adds Swinford, whose firm is no longer associated with the well-known consultant Pearl Meyer (BusinessWeek.com, 10/16/07). Here are edited excerpts from a recent conversation:
Now that there are more independent directors on boards and on their compensation committees, how is that affecting CEO pay decisions?