The Centre for Corporate & Public Governance is quoted in this months AE Investimentos, the popular magazine for investors based in Brazil. The Centres founder, J. Richard Finlay, was interviewed at length during a question and answer session for his views on CEO compensation, a subject about which he is quoted regularly by media outlets world-wide.
Executive remuneration and its role in contributing to the excessive risks and leverage leading to the current credit crisis is placing boards and pay rewards under a microscope as never before. The interview is another indication of an increasing global interest in curbing pay abuse. Here is an excerpt from the interview:
H exatos seis anos, o presidente do Centro para Governana Pºblica e Corporativa no Canad, Richard Finlay, afirmava que a excessiva remunerao dos CEOs era a doena da vaca louca dos conselhos de direo nos Estados Unidos. œOs acionistas da Amrica corporativa esto sendo dizimados por esta enfermidade. A crise das hipotecas de alto risco mostrou que os conselhos ainda no compreendem totalmente a obrigao que tm para com os investidores. Como resultado de um sistema falido, que compensa excessivamente mesmo CEOs de baixo desempenho, estamos vendo o desafio mais srio enfrentado pelos mercados de capitais desde a Grande Depresso, diz Finlay (leia entrevista).
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