Exact(11)
"Corporate boards, pay advisers and proxy governance firms need to rethink how they assess what executives are doing," he added.
Customers can pay advisers directly, and many do pay them 1percentt each year of the money under management.
Only 33 of the 113 companies disclosed that their pay advisers had done other work for them as well.
A large portion of that will most likely go toward penalties levied by the government, as well as to pay advisers like accounting and consulting firms.
Companies are willing to pay advisers a supersize fee when they do a deal because then it is merely a rounding error, a tip on a lavish, celebratory meal.
"While we cannot estimate figures with any accuracy, it seems likely that at least some of these staff would not be prepared to work their current unsocial hours under such circumstances," the pay advisers said.
Similar(49)
"When the market is up, executives all want equity," said James A. Hatch, an executive vice president at Compensation Resource Group, a pay adviser.
"In theory, this is the perfect compensation plan," said Paula J. Todd, a pay adviser at Towers Perrin, a consulting firm.
This month, Kenneth R. Feinberg, the Obama administration's pay adviser, made several exceptions to his $500,000 cash pay cap to retain executives at companies like American International Group.
The banks have tried to head off criticism by starting new charitable programs and by structuring executive bonuses in line with principles set by the federal pay adviser, like paying bonuses mostly in stock instead of cash and deferring the payout of some bonus money in case business declines again.
The paid advisers for the L.B.O. were JPMorgan Chase, Merrill Lynch, Citicorp North America, Bank of America and Barclays Bank.
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