From: Peter Wong
Securities and Exchange Commission
Dear Securities and Exchange Commission,
Please enact your proposed rule making on executive compensation disclosure. Too often executives are richly rewarded even when their companies' performance is below par. For a system that touts the virtues of the free market, should inefficiency or incompetence at the executive level be rewarded so lavishly?
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.