Shareholder rip-off documented

A report by Patterson Associates, a firm of remuneration consultants, documents the sorry saga of (Senior) Executive Compensation schemes that are designed to feather the nest of chief executives and their acolytes in senior management. As we said in an earlier post, the fish starts to smell from the head and we stand by our suggestion that all efforts to reduce excessive executive compensation have to start with resolute action to reign in the compensation of chief executives. Then, and only then, would there be an incentive to bring the compensation of companies into a more equitable equilibrium and reduce the disparity between top pay, average pay and difference between top and bottom pay in the organisation.