High Fees for Exec-Comp Consultants a Tipoff to Sumptuous CEO Pay: Study

With superior CEO spend a many years-lengthy source of agitation amongst observers of corporate management, it is no shock that there has been a lot finger-pointing at the military of govt-payment (EC) consultants that businesses look to for direction on the make a difference.

For instance, an influential Congressional report in 2007 complained that “compensation expert conflicts of curiosity are pervasive,” pointing out that near to fifty percent of the country’s premier corporations obtained CEO-spend assistance from consultants that had been delivering the companies with other solutions over which CEOs probably had the principal say. And, as the report pointed out, these other solutions, such as administering employee added benefits and controlling human sources, normally sum to many times the costs for EC consulting.

Taking its cue from observations along these lines, regulation of EC session has concentrated on what has appear to be referred to as cross-providing — on

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