Pension funds pin target on CEO pay

0 Comments | USA TODAY, December, 2005 | by Greg Farrell

Runaway CEO pay, a longtime pet peeve of shareholder activists and corporate governance experts, is about to take center stage in Washington, D.C.

At least that's the hope of 10 pension funds from the USA, Canada and Europe. In a confidential letter sent to the Securities and Exchange Commission on Nov. 30, representatives of the funds, which together manage almost $1 trillion, urged the SEC to look more closely at the pay for performance among top executives.

SEC Chairman Christopher Cox said last month that the commission would develop a rule proposal early next year regarding executive compensation. Once the proposal is announced, most likely in January, the SEC will seek public comment.

In a copy of the confidential letter obtained by USA TODAY, the...