Executives Express Rising Concern Around CEO Compensation, Global Korn/Ferry Survey Finds
- Majority of Executives Believe Shareholders Should Have a Say on Compensation -
LOS ANGELES, April 15 /PRNewswire-FirstCall/ -- Amidst recent calls for fair pay, more than one-third of executives (34 percent) expressed at least some concern regarding their CEO's compensation, according to the latest Executive Quiz from Korn/Ferry International (NYSE: KFY), a premier global provider of talent management solutions. In contrast, a 2007 Korn/Ferry survey of executives revealed that approximately one-fifth (21 percent) felt their CEO was overcompensated.
Additionally, four out of five executives (80 percent) indicated that shareholders should have at least some "say on pay" for their company's executives. Shareholders today are witnessing an ongoing disparity between rising CEO compensation and declining share prices.
"The tumultuous economic environment highlights the challenges with getting pay for performance right," said Russell Miller, managing director of Korn/Ferry's Executive Compensation Advisors. "The business community continues to focus on aligning pay and performance, and companies are having mixed success against this objective."
When asked if they felt their CEO's compensation directly reflects company performance, more than half (55 percent) of respondents indicated that it does not reflect or is only "somewhat" reflective of the organization's results. Another forty-two percent said their CEO's compensation was in line with company performance.
The Korn/Ferry International Executive Quiz is based on a global survey of executives registered within the firm's online Executive Center, ekornferry.com. Respondents from more than 50 countries, representing a wide spectrum of industries and functional areas, participated in the most recent Executive Quiz in March 2008.
About Korn/Ferry International
Korn/Ferry International, with more than 70 offices in 40 countries, is a premier global provider of talent management solutions. Based in Los Angeles, the firm delivers an array of solutions that help clients to identify, deploy, develop, retain and reward their talent. For more information on the Korn/Ferry International family of companies, visit http://www.kornferry.com.
SOURCE Korn/Ferry International
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