Tech company CEO compensation raises ire

Efforts at reform proceeding, but slowly

Executive compensation has been a hot-button issue for several years, and the final crop of fiscal year 2007 proxy statements filed in March and April did little to quell the cry for reform from industry watchdogs, activist shareholders and the general public.

In the high-tech industry alone, dozens of CEOs came away with multimillion dollar compensation packages, pumped up by huge stock and option awards. 

"Half of these companies had horrible years for their stockholders, yet the CEOs still walk away with sinful amounts of money," voiced one Network World reader in response to our compilation of CEO compensation  at 30 network-industry companies. "As an investor, I would like more accountability from the executives of publicly held firms. By accountability, I don’t just mean that they have to certify their financial reports. I mean they shouldn't get a bonus unless they have improved the investors’ positions."

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Executive compensation has been a hot-button issue for several years, and the final crop of fiscal year 2007 proxy statements filed in March and April did little to quell the cry for reform from industry watchdogs, activist shareholders and the general public.

In the high-tech industry alone, dozens of CEOs came away with multimillion dollar compensation packages, pumped up by huge stock and option awards. 

"Half of these companies had horrible years for their stockholders, yet the CEOs still walk away with sinful amounts of money," voiced one Network World reader in response to our compilation of CEO compensation  at 30 network-industry companies. "As an investor, I would like more accountability from the executives of publicly held firms. By accountability, I don’t just mean that they have to certify their financial reports. I mean they shouldn't get a bonus unless they have improved the investors’ positions."

Such comments echo complaints that have been voiced for years. "Executive compensation is under attack and has been for a number of years," says Nora McCord, a consultant at Steven Hall & Partners, which specializes in executive compensation consulting.