Voices
ample, we have people like Erskine
Bowles who had the distinction of
sitting on the boards of both Morgan Stanley and General Motors in
the years they were bailed out by
the government. And we have Martin Feldstein, the country’s most
prominent conservative economist,
who sat on the board of insurance
giant AIG when it nearly tanked
the world’s financial system. Both
Bowles and Feldstein were wellcompensated for their “work.”
Excessive CEO pay matters not
only because it takes away money
that rightfully belongs to shareholders, which include pension
funds and individuals with 401(k)
retirement accounts. Excessive
CEO pay is important because it
sets a pattern for pay packages
throughout the economy. When
mediocre CEOs of mid-size companies can earn millions a year, it
puts upward pressure on the pay
of top executives in other sectors.
It is common for top executives
of universities and private charities to earn salaries in the millions
of dollars because they can point
to executives of comparably sized
companies who earn several times
as much. Those close in line to the
boss also can expect comparably
bloated salaries. In other words,
DEAN
BAKER
HUFFINGTON
02.23.14
this is an important part of the story of inequality in the economy.
To try to impose the checks that
don’t currently exist, the Center
for Economic and Policy Research
(CEPR) has created Director Watch.
This site will highlight directors like
Erskine Bowles and Martin Feldstein who stuff their pockets while
not performing their jobs.
CEPR also worked with HuffPost
to compile a data set that lists the
Corporate CEOs often have
considerable input into who
sits on their boards. They pick
people who will be agreeable.”
directors for the Fortune 100 companies, along with their compensation, the CEOs’ compensation, and
the companies’ stock performance.
This data set is now available at
HuffPost as Pay Pals.
Perhaps a little public attention
will get these directors to actually
work for their hefty paychecks. The
end result could bring a lot of paychecks for those at the top
back down to earth.
Dean Baker is the co-director of the Center for Economic Policy and Research.