AT&T, HP among firms pledging pay changes

[st8grad93]

Source: CNN Money

NEW YORK (CNNMoney.com) -- A handful of major corporations have agreed to change the way they pay their employees, as calls to reform executive compensation structures heat up.

AT&T (T, Fortune 500), Cisco Systems (CSCO, Fortune 500), Hewlett-Packard (HPQ, Fortune 500), Tyco International (TYC) and the Nasdaq OMX Group (NDAQ) are among the nine companies pledging to adopt guiding principles set forth by The Conference Board, a business research firm.

The companies agreed to clearly link pay to performance, provide fair and "affordable" compensation, eliminate excessive golden parachutes, ensure the board oversees the pay packages and increase transparency with shareholders, according to a Conference Board report released Monday.

"Implementing the compensation principles we recommend is an important step in restoring the damaged trust in American companies," said Robert Denham and Rajiv Gupta, co-chairs of The Conference Board Task Force on Executive Compensation, in a statement. "We believe that a rules-based, 'check the box' approach cannot substitute for thoughtful board action discussed with shareholders."

Read more: http://money.cnn.com/2009/09/21/news/companies/executive_compensation/index.htm?source=yahoo_quote

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A step in the right direction.

[shraby]

1. THEN they should take the money saved and give the

all the rank and file nice raises.

[SharonAnn]

11. Right. They're obviously scare now, so let's keep them moving in the right direction.

[Dappleganger]

2. Tyco should have learned their lesson in 2001.

But hey, they will undoubtedly find some more creative ways to screw over their workforce.

[Ruby the Liberal]

3. Until the incentives are based on long-term goals

as opposed to quarterly earnings reports, nothing will change.

[Piewhacket]

4. too little, too late. but amusing how 'reasonable' they suddenly get.

[liberal N proud]

5. Companies are still interested in one thing - Share profit quarter over quarter

Companies will sell everything if it would increase the share price from one quarter to the next.

They no longer look to next year, 5 years or 10 years.

[Myrina]

6. ... and I'm sure they're going to start at the Mailroom, then eventually work up ...

.... to the Execs. In 12 years or so. But not right away. :eyes:

[Festivito]

7. Isn't that sweet. /nt

[Psephos]

8. It's better than nothing, and more importantly, acknowledges the problem

Which will help spread the message to other companies to get on board.

Cultural perceptions can't be changed overnight. They're like glaciers - they move because of the effects of pressure over time.

Our job is to keep the pressure constant.

[fascisthunter]

9. not nearly enough

[Vidar]

10. A step in the right direction, but not nearly enough.