April 6, 2005
Securities and Exchange Commission
Dear Securities and Exchange Commission,
I am writing to urge the Securities and Exchange Commission to act on its proposed rule making on executive compensation disclosure. 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. Under the proposed rule, a director could secretly do $120,000 in business with a company, an amount that is more than four times the average worker's annual pay of $27,460. Shareholders should be told if directors have potential conflicts of interest, no matter what the amount.
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.
MR. NACHIO,FORMERLY OF QWEST PHONE COMPANY AND CURRENT PERSON TO BE INVESTIGATED, HOPEFULLY WILL SPEND TIME IN PRISION, CONTEMPLATING HIS PAST MISDEEDS. SHAREHOLDERS,RETIREES, AND CURRENT EMPLOYEES WHOSE PENSION WAS PUT IN COMPANY STOCK WATCHED THEIR FUTURE GO UP IN SMOKE AS THE STOCK FELL FROM $64 TO LESS THAN $3 A SHARE. THIS JUNK BOND STATUS DESTROYED MY HUSBAND'S PENSION AND MY SON'S FOUR YEARS OF COLLEGE TUITION. THIS FORMER EXECUTIVE LIVES IN A PALATIAL ESTATE WITH BODYGUARDS WHILE WE WILL BE RETIRING IN POVERTY.
PRESIDENT BRUININKS, PRESIDENT OF THE UNIVERISTY OF MINNESOTA , RECEIVED A 10% RAIS FOR HIS GOOD SERVICE WHICH INCLUDES RAISING MY HEALTH CARE FROM BEING COVERED TO OVER $3000 A YEAR.
WHEN A WAGE FREEZE ENDED, THE NEXT PAY HIKE DID NOT COVER INFLATION,PARKING, HEALTH CARE OR THE 60% HIKE IN TUITION DURING HIS ADMINISTRATION.
AS A WORKING PERSON AND STOCKHOLDER,I TRULY RESENT THE BRASS BALLS, GOLDEN PARACHUTES AND PLATINUM WAGES GIVEN TO THE EXECUTIVES WHILE THEIR EMPLOYEES AND SMALL STOCKHOLDERS SUFFER.