Ceo pay backdating
(Imagine the effects this has had on people trying to secure a mortgage or buy a car.) But we also need to be talking and doing more about the inherent problems of equity pay and the costs these executive pay practices impose on the American public.For more on policy solutions to the performance pay issue, see Understanding the CEO Pay Debate: A Primer on America’s Ongoing C-Suite Conversation and Executive Excess 2016: The Wall Street CEO Bonus Loophole.They also fully disclose this compensation to investors, and deduct the cost of issuing the options from their earnings as they are required to do under the Sarbanes-Oxley Act of 2002.But, there are also some companies out there that have bent the rules by both hiding the backdating from investors, and also failing to book the grant(s) as an expense against earnings.
This means they must wait for the stock to appreciate before making any money.Do you ever wish that you could turn back the hands of time?Some executives have, well, at least when it comes to their stock options.We so often talk about skyrocketing CEO and executive pay in terms of fairness and morality—and the fact that CEOs are paid 276 times what the typical worker earns is, on its own, a justice issue.But we also need to be talking about the serious risks to our personal wealth and economic stability from the pay that executives receive, which is heavy on equity and particularly stock options.
The public scourging that the Senate Banking committee gave Wells Fargo CEO John Stumpf on Tuesday was cathartic to watch.