IBM’s CEO writes a new chapter on how to turn failure into wealth
by Bill Hayes
In IBM’s CEO writes a new chapter on how to turn failure into wealth, Los Angeles Times business columnist Michael Hiltzik looks at the issue of CEO compensation.
Government officials and regulators have wrestled for years with how to bring CEO compensation under control. They’ve imposed limits on the tax’-deductibility of CEO pay, and given shareholders the option to vote on compensation policies (though only in an advisory role). Nothing seems to work.
The latest initiative came from the Securities and Exchange Commission, which voted last year to require public companies to disclose the ratio between their CEOs’ pay and the median pay of their workers. The regulation, mandated by the Dodd’-Frank Act of 2010, provoked one of the largest outpourings of public comments the SEC had seen, some 287,000. [more]