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In short, then, we may want to change executive pay practices for a variety of social, political and moral reasons.
Trying to change the entitlement mind-set that drives executive pay practices is a worthy goal, of course.
WHEN a company receives criticism about its executive pay practices, a typical defense is to cite a rising stock price as justification of its pay.
Some investors, including Fidelity Worldwide Investment, called this month for an urgent review of executive pay practices, saying excessive paychecks hurt confidence in companies' management teams.
Yucaipa raised questions about the company's executive pay practices and some of its deal-making, including the purchase of a college bookstore business owned by Mr. Riggio.
Many shareholders appear to believe that in the post-Enron era, criticism of companies is warranted, especially on executive pay practices and overly compliant boards.
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Mr. Cohn, 47, and Mr. Winkelried, 48, received 40percentt of their compensation in cash and 60percentt in restricted stock and options, Goldman said Friday in a proxy filing The awards "are not doing anything to take the focus off executive compensation," said Laura G. Thatcher, head of the executive pay practice at the Alston & Bird law firm in Atlanta.
Con Edison's executive-pay practices had already earned the company low marks from monitors of corporate boards.
My organization believes that a majority director voting standard -- requiring that a director receive a majority of the votes cast in order to be elected -- is the real solution to the problem of abusive executive-pay practices.
None of these aspects of executive pay in practice, the authors contend, can be easily explained by optimal contracting.
He attacked what he called the exorbitant growth of corporate executive pay and the practice of some American companies moving operations overseas, suggesting that President Bush has not done enough about either.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com