Jeffrey Stinson of USA Today wrote an interesting piece on growing resistance by European policy makers and shareholders as regards to CEO compensation. According to Stinson,

As losses pile up on balance sheets and stock prices drop, Europe is threatening to rein in U.S.-size compensation for its top corporate executives.

From Paris to Amsterdam to Berlin, finance ministers, politicians and government watchdogs are talking of curbing soaring executive pay, bonuses or golden parachutes for CEOs who depart with big severance packages.

… Behind the threats is growing public and shareholder ire with multimillion-dollar compensation packages that are starting to rival American CEO pay at the same time European economies and financial markets are sagging.

Keep a close eye on Europe’s approach to CEO compensation. If they move on the issue, American CEOs will find themselves under even greater pressure as to exorbitant executive compensation packages.

This entry was posted on Tuesday, July 1st, 2008 at 2:27 pm and is filed under Liberum Management Change. You can follow any responses to this entry through the RSS 2.0 feed.