Bloomberg.com: Obama Pay Plan Lacks 'Meat on the Bones' to Trim CEO Paychecks

Bloomberg.com: Obama Pay Plan Lacks ‘Meat on the Bones’ to Trim CEO Paychecks

June 11 2009

The Obama administration’s pay proposals may lack the “meat on the bones” to rein in firms accused of overpaying executives.

The administration proposal, which needs congressional approval, would authorize the Securities and Exchange Commission to require so-called say-on-pay, a nonbinding shareholder vote on compensation including salary, bonuses and stock awards for the top five executives at public companies.

Steven Hall, managing director at Steven Hall & Partners LLC, a New York-based compensation consulting firm, said the vote requirement may complicate pay decisions.  “At what point does a non-binding vote become binding because you can’t ignore it anymore?” he said.