Executive pay at the nation's largest corporations has more than quadrupled since the 1970s. In light of steeply rising income disparity in the U.S., extravagant CEO pay remains intensely unpopular, and presents significant material and reputational risks for firms. This is particularly true in financial institutions where excessive pay is seen to incentivize excessive risk-taking.
While expanded reporting of executive compensation is mandatory under Dodd-Frank, more comprehensive public disclosures around the structuring of pay packages is sought by investors as a question of good corporate governance. ICCR members call for executive pay formulas that reconcile compensation with specific performance metrics including ESG performance and that align more appropriately with the salaries of average employees.