Moody's Investor Services Shows Link Between Excessive CEO Pay and Bond Defaults.
Moody's
Investors Service examined 43 companies that defaulted on bonds between
1993 and 2003, Moody's found. Twenty-two of these companies had
boards that offered chief executives much-larger-than-expected
bonuses or stock option grants at least once. Of 214
cases of "large downgrades" CEO compensation was higher
than expected in 140 cases. For more information, click here. |