Saturday, December 8, 2007

Consultants at Work

"'Consultants who recommend pay packages for the nation's top executives have 'pervasive' conflicts of interest that appear to be inflating executive compensation, says a Congressional study. ... The study found that median CEO pay in 2006 was 67% higher at companies whose consultants had the largest potential conflicts from other business", WSJ, 7 December.

Why should compensation consultants have fewer conflicts than investment bankers or CPAs? Will this study result in as many improvements in compensation consultants work as the 1976 1760-page congressional study of the then Big Eight CPA firms, the "Metcalf Report"? See my 6 October post.

1 comment:

Krupo said...

Why does this not surprise me at all?