CEO Pay Rises 12% in 2005
The Christian Science Monitor published an article recently concerning the SEC's desire to promote more disclosure of CEO pay. The article begins with a host of extravagant perks available to CEO's. The bottom line, however, is that
"Such revelations of CEO compensation - a few among dozens of similar examples - have helped spur a drive to make corporate pay more transparent. [The SEC] is expected to require companies to provide more details about how they pay top honchos, including pumped-up pensions and weekend family picnics on Nantucket via the company jet....As a result, shareholders, watchdog groups, and publications such as Business Week should find it easier to tabulate a CEO's total compensation. And companies may also now have to give more details about what departing executives...will make once they leave."
From the perspective of employee engagement and communication, organizations need to be cognizant of the perception that these seemingly excessive perks and compensation packages can make. Employees who will average a 3.5% raise this year and pay more for their benefits do not want to hear about their bosses getting 12% increases and perks that are unrelated to performance.