An Antidote to Excess


A recent study by Institutional Shareholder Services found CEO succession planning, which many public company boards have adopted over the past three years, to be a key practice in reducing excessive executive and golden parachute payments. The study suggests that without a succession plan in place, a board can become desperate to hire an outsider and is then more willing to offer a “candy store of incentives.”

Index Group

Percentage of companies with a board-approved CEO succession plan, Jan. 2004 Percentage of companies with a board-approved CEO succession plan, Jan. 2007 Percentage- point change
(rounded)
CGQ Universe 1 2% 28% +26
Russell 3000 12% 64% +52
S&P 400 38% 90% +52
S&P 500 65% 96%
+32
S&P 600 20% 82%
+62
Grand Total
14% 54% +39


1. 5,000 public companies tracked by ISS’ Corporate Governance Quotient

Source: Exit Pay: Best Practices in Practice, The ISS Center for Corporate Governance, 2007, www.issproxy.com/pdf/ExitPay2007.pdf.

SPONSORED REPORT

Cybersecurity threats proliferating for midsize and smaller businesses

This report details how SMBs can properly protect private information from breaches, design and implement a cybersecurity policy, and create safeguards for training and education.

QUIZ

Test yourself on these often confused words

The spelling checker on your word processing program can do only so much to flag problems. Your best insurance is to learn the troublesome words that trip up writers and use them correctly by the standards of formal, written English.