|
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 |
| 3. |
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" |
|
