From: Richard McGonagle |
Securities and Exchange Commission Dear Securities and Exchange Commission, I am writing to thank you for finally pointing the investigation of why things are so expensive in the right direction, and to urge the Securities and Exchange Commission to act on its proposed rule making on executive compensation disclosure. For far too long the blame has been placed on unions and their compensation packages. Like Health care and pensions, when that is nowhere near the cost of what is being paid out to top executives. Even though they may be running companies into the ground. Too often executives are richly rewarded even when their companies' performance is below par. Without better disclosure, shareholders, employees and the general public cannot evaluate whether executive pay packages are unjustly enriching executives at shareholder cost or providing fair compensation. The newly proposed rules will make this crucial information more accessible to shareholders and the public. The new requirements to disclose total compensation figures, pensions and detailed compensation breakdowns will make it clear exactly how much top executives are earning and why. I believe that CEO pay should be set by independent directors. I also urge the SEC to require that companies disclose pay-for-performance data. In order for investors to understand how pay and performance match up, companies need to explain more clearly what level of performance is necessary for a particular level of pay. I urge the SEC to require companies to disclose both the performance criteria and the performance targets they use when setting executive pay. Sincerely, Richard McGonagle |