Executive Pay Reform

As long as Boards are left in charge of determining executive compensation there is little - or no - hope of serious reform. Examples such as the (Ab)use of non-GAAP numbers in setting 'incentive' compensation show that Boards are only too eager to use any ruse that can justify more and more egregious pay numbers. Little wonder, most Board members are on the receiving end when pay is set in the companies they are managing. And even if they are serving on Boards to boost their - usually already bloated - retirement income they belong to the same 'Club' as they will have been on the receiving end of similar 'incentive' plans during their active working lives.
Why Management Is Incentivized to Fabricate Earnings: It's All about non-GAAP Bonuses (davidstockmanscontracorner.com)
(31 May 2016)

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