Reining in Excessive CEO Pay

Fat cat compensation should play no role in responsible corporate performance at taxpayer-guaranteed banks. Prior to the financial crisis, the CEOs of the giant financial institutions that drove our economy off a cliff received exorbitant compensation packages. Corporate officers should be paid for long-term performance, not short-term illusions. Managers of financial firms receiving federal support should be accountable to taxpayers as well as shareholders.

To rein in excessive CEO pay and restore accountability, Public Citizen supports the following reforms:

  • Withhold bonuses for five years to ensure that the gains from any year will be stable.
  • Claw back bonuses from results that are later found to be illusory.
  • End the taxpayer subsidy for pay above $1 million (as a current loophole allows corporations to do for CEO bonus pay).
  • Empower shareholders by giving them a binding vote on executive pay packages.

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More Resources on Executive Compensation