The CEO Pay Machine: How It Trashes America and How to Stop It

Clifford, former CEO of King Broadcasting Company and National Mobile Television, takes an enlightening and refreshingly candid look at the contentious topic of chief executive compensation. Clifford examines the current norm for CEO pay structures, which includes short-term bonuses and long-term incentives that are typically measured against poorly defined, subjective criteria. He questions the wisdom of an out-of-control bonus system that limits an organization’s progress or induces a CEO to act in a way that may be in conflict with a company’s best interests. Instead, he advocates replacing an annual bonus with restricted stock, making the CEO a shareholder with a vested interest in the organization’s success. Other convincing and well-reasoned recommendations include prohibiting CEOs from also being board chairpersons, linking pay to internal equity, and instituting a luxury tax on excess compensation. This sound and persuasive argument holds the key to aligning CEO pay with a company’s future success, and is essential reading for board members seeking to better serve their shareholders. [em](May) [/em]