A coalition of US companies, investors and directors will today propose a radical overhaul of executive pay, calling for the elimination of controversial practices including severance payments, tax refunds and the personal use of corporate jets.
The group, formed by the Conference Board, a business organisation, will criticise corporate America for not reforming its compensation structures before the crisis, blaming that failure for causing a “loss of trust” in US companies.
The report by the coalition, which is backed by companies including the technology groups Cisco, AT&T and Hewlett-Packard, and large investors such as the California State Teachers' Retirement System, underlines the corporate sector's desire to quell public anger at excessive compensation and stave off government action on the issue.