April 6, 2005
Securities and Exchange Commission
Dear Securities and Exchange Commission,
I am writing to urge the Securities and Exchange Commission to act on its proposed rule making on executive compensation disclosure. Too often executives are richly rewarded even when their companies' performance is below par. Without better disclosure, shareholders, employees and the general public cannot evaluate whether executive pay packages are unjustly enriching executives at shareholder cost or providing fair compensation.
The newly proposed rules will make this crucial information more accessible to shareholders and the public. The new requirements to disclose total compensation figures, pensions and detailed compensation breakdowns will make it clear exactly how much top executives are earning and why.
I believe that CEO pay should be set by independent directors. Under the proposed rule, a director could secretly do $120,000 in business with a company, an amount that is more than four times the average worker's annual pay of $27,460. Shareholders should be told if directors have potential conflicts of interest, no matter what the amount.
I also urge the SEC to require that companies disclose pay-for-performance data. In order for investors to understand how pay and performance match up, companies need to explain more clearly what level of performance is necessary for a particular level of pay. I urge the SEC to require companies to disclose both the performance criteria and the performance targets they use when setting executive pay.
Bottom line is:
This situation is without a doubt "Deplorable" and should be stopped. CEO is just a title and he/she is just a conductor of an orchestra of people who do all the work. In this day and age of enlightment of most of the public, who do CEOs think they are kidding. It's outrageous that the government let's them get away with making so much money, when they do little to provide for the very people who work hard to survive to just find affordable housing and try to maintain a decent life style.
Please consider putting a low cap on the retirement earnings of such individuals and bump up the pensions of the people who DO ALL THE WORK!!!