You can be an activist

There are two comment sections at the SEC rule making hearings that relate to executive compensation. One is file S7-10-09 concerning investor access to proxy statements for directors positions.  The other is file S7-12-09 concerning corporations involved in TARP and their executive compensation packages. If you write or email use either of these two file references.

The comments I sent to the SEC on both were as follows:

"The inherent problem the public has with executive compensation is that it does not connect with any part of the corporate management that the public understands. Executive compensation should be publicly tied to corporate management performance.

"The way to tie executive compensation to corporate managerial performance is for the SEC to establish a set of compensation/performance packages and require all public corporations to select one of the packages and stick with it for five years before selecting another package.

"The proposal would resemble the Social Security supplemental health care packages that range from A to J and health insurers must fit their packages into one of the A to J categories."

If you decide to write to the SEC tell them who you are.  I said the following about myself:

" I am a former bank vice president, corporate treasurer, foundation president, management consultant to dozens of international corporations, expert witness on executive compensation and author of half a dozen books on finance and management.

"My blog on this subject is here http://phillips.blogs.com/goc/2009/07/reform-of-executive-compensation.html"

Send your comments.