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He wants more corporate-governance rules, including one to let shareholders set executives' compensation.
One way of trying to keep pay in check, or at least narrowing the gap with the wider workforce, would be to elect staff to the remuneration committees that set executives' awards.
At the upper end of the market, a few phone calls will land a fully furnished apartment designed for the Town Car set: executives on a short assignment, actors in town for a film, or a couple looking for accommodations while they renovate a Classic 6 on the Upper West Side.
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He argued that remuneration committees – the sub-committee of boards that set executive pay – need to be more sensitive to the current mood.
The centre has warned that some companies are ignoring legal requirements to take the pay of ordinary workers into account when they set executive pay, and has called on the Financial Reporting Review Panel to intervene.
The last thing I want is for Congress or governments to set executive pay.
In its proxy statement, Enron's board said its goal was to set executive pay in the 75th percentile of its peer group.
Independent directors should set executive pay with an emphasis on company performance and total transparency, rather than have directors become mired in a political process that could slow down board operations, Castellani says.
Even so, fears of a meltdown by jet-setting executives have been hyperbolic to a fault.
But Mark Reid, the head of Towers Perrin's UK compensation practice, says that investors in British companies have recently become far more involved in setting executives' pay and are opposed to the globalisation of American norms.
The increase in Mr. Mack's salary was approved by a board committee that sets executive compensation policy.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com