A Final Note

To conclude this case, we use a comment from Robert A.G. Monks, one of your authors:

"This is a great opera with many themes! I find that Grasso illumines with almost unique clarity the structural elements that account for a compensation system out of control.

1. Asymmetry of interest, knowledge and attention between the recipient and those responsible for setting pay.
2. Ultimate payers are diverse, invisible, fractionated to the point there is no one who FEELS the money is coming out of their pocket

Availability of power in the payee

a. Power to hire experts – lawyers, pay consultants – who all have ambitions for future work
b. Power in the NYSE situation over the payers through regulatory discretion
c. Control over the choreography of meetings – the corporate secretary and counsel work for the MAN.
4. Utter misuse of comparables
5. 'Stealth’ – nobody actually knows what is being paid
6. Multiple compensation schemes which are never presented in their totality"