In 2003 the El Paso Corp., a natura...

In 2003 the El Paso Corp., a natural gas company, decided to eliminate executive make trims motivated by the increasing affects of investors about excessive compensation. "We propound a competitive salary and benefits package, and that works fine for us," said a spokesman for the company, whose CEO earned $519 million last year. individual can only imagine how thankful shareholders in corporations large and small would be moved in this era of heightened accountability if all companies took that approach.

No common is expecting the purging of scans to become a hot sweep in today's corporate boardrooms. It's the "extras" that often draw the top executives to the top companies. And it's certainly within the rights of the boards of directors of corporations to impose together the kind of compensation packages and look narrowlys they believe executives should earn.

on the other hand just make sure it's all transparent, that shareholders know what's happening.

As the demand for filled disclosure of personal benefits intensifies in the wake of the convictions of like icons of excess as former Tyco CEO Dennis Kozlowski, whose company paid $1 million for his wife's 40th birthday party in succession Sardinia, hidden or disguised or unaccounted-for personal expenditures may well become the exception rather than the order

That turn gained solid footing recently when the Securities and Exchange Commission, culminating a prolix examination of the problem, vot to require companies to provide detailed information each year on compensation for their top executives.

In the past, a CEO or CFO could hide excessive perquisites of the like kind as the use of a company aircraft for personal use beneath a broad category such as "travel and entertainment." A top executive could shapeless mass hundreds of thousands of dollars in miscellaneous personal expenditures under this kind of heading to avoid paying taxes upon them. The SEC has taken decisive action to curtail, if not eliminate, that practice.

Details about executive scans are of great value to investors not alone because it keeps them abreast of potential illegalities, yet also because it can raise disturbs about how effectively and smooth sanely the company is being l And most numerous crucially it helps investors make smart decisions about where to set their money.

It's safe to say that when total compensation rises plane as a corporation's stock and workers' salaries do not, there is plague afoot. The perks "can ruminate the poor judgment of the board of directors, and they're taken seriously for that reason," said Nell Minow, a "shareholder activist" with local ties who scrutinizes corporate governance as editor of thecorporatelibrary.com. A lack of accountability has left many shareholders and outside on-lookers angry and wondering if stockholders have been misled or cheated.

The SEC which also vot for stricter disclosures of the timing of stock option grants to company officials, compromised forward its original perks proposal. It would have required companies to disclose the pay of up to three non-executive employee who made more than any of their five senior executives. It was called the Katie Couric mastery indicating it was targeting chiefly entertainers and professional athletes. The compromise focuses forward non-executive employees who help locate policy for corporations.

further there should be more than enough teeth in the ruling to have CEO think twice before charging that golf bludgeon membership or maid service or vacation flight to Tahiti to the company.

Copyright CHICAGO SUN-TIMES 2006

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