McDonough waded into the heated debate over executive remuneration during a speech delivered to the National Association of Corporate Directors in Washington yesterday.
He urged directors attending to not only take note of the views of shareholders, but of the ‘anger of the American people’.
‘In an ideal world today every CEO would come to you board members and ask that you re-examine executive compensation, starting with his or her own pay. What made sense two or three years ago may not make sense today,’ he said.
In the event of CEO resigning if pay was ‘rightfully reduced’ McDonough said directors would have the satisfaction of having said to investors and to the public that ‘this is the what the job is worth’.
Last month, the chairman of the New York Stock Exchange, Richard Grasso, resigned following an investor outcry over an enormous compensation package he was due to receive, while Rupert Murdoch’s News Corporation is currently seeking shareholder approval to almost triple the salaries of its eight non-executive directors.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements