With investors increasingly unhappy over CEO pay and increased news coverage and public outcry what will the solution be? To many Board of Directors still have the 'good ole' boy system. However, stockholders are now making their voices heard with the upset over CEO Robert Nardelli at Home Depot, who received more than $120 million after a drop in stock performance, as quoted in Business Week (http://www.businessweek.com/mediacenter/podcasts/cover_stories/covercast_01_04_07.htm?chan=search )
Bob Nardelli's departure from Home Depot came down to a squabble over pay for performance and yet they pay him to leave. AT&T gave a $26 million severance package to a CEO that only lasted 9 months. When stocks go up, then CEO's have earned their pay and their pay may go up with limited interference from employees, investors and the public at large. However, when stocks go down, why are CEO’s leaving companies with multimillion dollar severance packages?
