House Dems Look at Conflicts Behind CEOs’ Fat Pay
5th December 2007
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Talk about an inside job. It's little wonder that CEO pay continues to soar when the consulting firms many corporations hire to determine executive pay levels also earn millions of dollars for handling other consulting work for the same company. After all, why tick off the top honcho of the company that signs your checks?
This morning, the U.S. House Committee on Oversight and Government Reform explored the role that "conflicted consultants" play in fueling the soaring CEO pay rocket. Says committee chairman Henry Waxman (D-Calif.):
Last year, 113 Fortune 250 companies retained conflicted consultants. These consultants typically receive $200,000 to advise the company about executive pay—and over $2 million to provide others services, like benefit administration, to the company.