The Pay Game
Kevin Salwen on Money
Could it be that there is finally a voice of reason in the world of executive pay? The former CEO of DuPont, Edgar Woolard Jr., has begun to rant on the outrage of executive pay -- and how that is crippling the image of business leaders. 'I honestly don't understand why more CEOs aren't concerned about the image of business leaders in general,' Mr. Woolard said in an interview with the New York Times. 'They don't seem to have the same perception I do that business leaders are beginning to be thought of as politicians and labor union leaders and other types of individuals who don't have the right respect.'
Politicians and labor union leaders. Wow. That's a pretty scathing comment from a guy who used to run one of America's biggest companies.
Woolard will be speaking on the subject next week to a group in Chicago. But he has taped his presentation and you can watch it at: www.compensationstandards.com/nonmember/EdWoolard_video.asp.
(Side note: I'm having trouble with links today, so just cut and paste. Also, I'd link to Gretchen Morgenson's Times piece, but it's now behind the paper's annoying pay-only firewall.)
Woolard lays out why the game is fixed (the comp consultants talk to the company's HR people, who feed back to the CEO, allowing him to influence his own pay), but then stops short of coming up true workable solutions. And, of course, being a retired exec gives him much less of a bully pulpit. That said, it's great to see a guy inside the club calling the club for what it is -- a demotivating scam.