Panel Finds Rising Executive Pay May Be Linked To Consultant Conflicts

03/28/2008 02:45 am ET | Updated May 25, 2011
  • GRETCHEN MORGENSON New York Times

Conflicts of interest are pervasive among executive compensation consultants, according to a Congressional investigation. Moreover, the inquiry found, consultants who do other work for companies while helping them devise executive pay recommended significantly higher pay packages than consultants who had no such additional relationships.

The comprehensive analysis was released yesterday at Congressional hearings convened by Henry A. Waxman, the California Democrat who is head of the House Committee on Oversight and Government Reform. Concerned that rising executive pay might be a result of consultant conflicts, Mr. Waxman asked the committee's staff last summer to collect information from six top consulting firms about their work for the 250 largest publicly traded companies.

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