Suddenly our beat is hot. Did you see this memo from the White House today, the one seeking more restrictions on executive compensation at the bailed-out banks?
It is six dense pages covering the landscape of topics that only shareholder-relations geeks like ourselves normally care about: clawbacks, say on pay, CEO certification, disclosure, the list goes on.
Secretary of the Treasury Timothy Geithner is even planning, get this, a conference on long-term executive pay reform. He says he will host shareholder advocates and institutional investors among others ‘[seeking] testimony, comment and white papers on model executive pay initiatives in the cause of establishing best practices’ in the financial sector. OK, now this is really hitting close to home.
At a press conference today, Obama was sounding pretty angry, saying he was ‘disgusted’ with executives up to their ‘same old tricks’. We can’t see how there won’t be fallout for companies outside banking. So start reading up.