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June 16, 2008

If You Reap Rewards, Then You Bear Responsibilities, Too ... Right?

    Under their current payment system, it appears that corporate executives receive large payments regardless of their companies' financial performance.  The idea that achieving balance in the payments received by corporate executives is a desirable goal, is shared by increasing numbers of people, among them, the president of a New York investment firm quoted in Gretchen Morgenson, "Fair Game/Approve This Deal, or Else" p. 1, col. 3 "SundayBusiness" Section (New York Times Nat'l Ed., Sunday, June 15, 2008), available online at www.nytimes.com.  The idea is that corporate executives need to share in the risk, as well as in the reward.  Since they have the opportunity to receive large payments, so the idea goes, they should receive large payments if their corporations perform well financially, but they should pay back some or all of the payments they have received, if their companies do not perform well.

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