Northern Insight: Bring on the consultants, part 1

Friday, February 10, 2012

Bring on the consultants, part 1

How CEOs Jack Up their Pay, Kimberly Weisul, Editor & Founder of One Thing New:

"Poor, downtrodden, underpaid CEOs finally have someone they can turn to in their hour of need: compensation consultants.

"...there's a simple way to boost their pay. Just call in the compensation consultants--the more, the merrier.

"On average, when a firm adds a compensation consultant, CEO pay rises by 8.5%.

"Companies with larger boards pay CEOs more.

"Firms with larger compensation committees tend to employ more consultants.

"Cutting the CEO's paycheck, the researchers note, doesn't seem like a very good way to win repeat business or to get hired to consult in any other areas."

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I write and edit this blog alone. I don't belong to any political party but I favour public education, efficient social programs, democratic trade unionism, free competitive markets and encouragement of owner-operated businesses. I believe all public and quasi-public servants should be subject to stringent measures of accountability and conflict prevention.

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