Executive compensation

AP IMPACT: CEO pay chugs up in ‘07 despite economy | Newsweek News …

Jun 16, 2008 … AP IMPACT: Even as economy grew cloudy in 2007, CEO pay chugged ever higher, … River rises again, along with worries in Mo., Ill. … www.newsweek.com/id/141723 - 59k

I am amazed every time I hear about how executive compensation is growing.  No matter how the corporations are doing, the corporation’s top executives seem to be making money hand over fist.  It is just outrageous that these executives are being paid multimillion dollar salaries and receiving bonuses in years of economic downturn. 

I feel that an executive’s compensation package should be tied to the performance of the company.  An example that the Newsweek article gave, was of Rick Wagoner, CEO of General Motors corporation.  Mr. Wagoner received a sixty-four percent pay increase which equated to $15.7 million dollars, in 2007.  This increase was given to Mr. Wagoner when General Motors had just announced  that four of its plants were being closed due the increase in gas prices, which has lead to the decrease in demand for the larger SUV’s and big trucks. 

My question is how can these executives sleep at night, when they are closing plants, laying off workers, and yet they are receiving millions of dollars in salary packages each year. 

The article did go on to talk about Aflac Incorporated is the first major U.S. company to give investors a vote on how senior management is being paid.  I think this is a step in the right direction.  Of course I am sure that the executives will be compensated in other ways, at least this is hopefully the beginning in how the U.S. will start to curb these ridiculous salaries that are currently being paid to the executives.  F Pokorny