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John England, head of the financial services compensation practice at Towers Perrin, was the consultant on Merrill's pay practices.
"That's very unusual," said Ira T. Kay, the director of the executive compensation practice at Watson Wyatt & Company.
Manan Shah is a partner in the employee benefits and executive compensation practice at Jones Day in New York.
"It's like the company is making an interest-free loan," said David M. Leach, the director of the compensation practice at Buck Consultants in New York.
Mr. Kay, 57, heads the executive compensation practice at Watson Wyatt Worldwide, which is one of the country's leading compensation consulting firms.
Laura Thatcher, the head of the executive compensation practice at Alston & Bird, said that his role raised serious questions about government interference in compensation in the private sector.
Similar(21)
All financial institutions must review their compensation practices.
Congressional interest in nonprofit compensation practices has also increased.
Consultants expect that trend to continue as companies report 2001 compensation practices this spring.
Disclosing details of its compensation practices "would result in significant competitive harm," Sotheby's said.
Forcing the company to justify its compensation practices, he said, may result in better pay decisions.
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