Associated Press: Changes May be Afoot in '09

Associated Press: Changes May be Afoot in ’09

May 1 2009

CEO pay fell in 2008, but will the pullback last?  The answer hinges on whether corporate boards make changes now to keep compensation at less stratospheric levels for the long term.

For critics of high executive pay, this is the year when public and political anger has lined up firmly on the side of reform.  But those involved in setting pay — directors, lawyers and consultants, among others — face the genuine challenge of retaining and attracting top executive talent without fueling an even greater backlash against CEO pay.

“It comes down to balancing what is the right thing to do for the company, and having to look over your shoulder at what the shareholders and the media think,”  said Steven Hall, who runs a compensation consulting firm.