Exposing the Compensation Consultant Smokescreen

The Wall Street Journal has reported that many corporate boards are attempting to reform their compensation practices by changing the nature of their relationship with compensation consultants. Many observers have noted for several years the inherent conflict of interest that exists when compensation consultants are brought in to make recommendations on the pay of the same managers who have the power to direct additional consulting business to the same firms. The “solution” some boards seem to have come up with is to continue using compensation consultants but to limit any additional work given to these firms. Read this article for more details.

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