" But a study of changes made in pay practices by 191 of the nation’s largest companies this year shows that where pay is concerned, enlightenment remains a long way off. In other words, meet the new pay, same as the old.
The study was conducted by James F. Reda & Associates, an independent compensation consultant in New York, and it looked at proxy filings issued by almost 200 companies in the first half of 2009. The firm analyzed changes these companies made to their pay plans that take effect this year.
The biggest shock? Instead of seeing a greater reliance on long-term incentive programs, the Reda report found that changes in these companies’ plans made short-term incentive pay a bigger part of the compensation pie. Let me say that again: The plans — despite the calamities that short-term profiteering has visited on our economy — made short-termincentives a bigger component of compensation."
NOT DIRECT QUOTE MY SUM: the share of executive pay in incentives as compared to base salarly tripled from 10 to 30 percent from 1987. And the movement is toward more not less short term incentives, "that invites riskier behavior among executives," Mr. Reda said.
The Quick Buck Just Got Quicker, GRETCHEN MORGENSON, New York Times,
Published: August 15, 2009, B1-2.