From: Sandra Schoneman
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.
_____________________________________________ ADDED INFORMATION In serving on the Negotiating Committee for several years of my corporation, each time our union / management attempts a fair contract that my co-workers and myself can live with in peace. We (union negotiating commte.)deal with this issue asked by the negotiating cmte. & by my co-workers, etc., and do not have the ability to give an answer to this important question. I very much believe that we workers (& all of us) of our organizations / companies deserve to be aware of this knowledge. It impacts our very future and our own retirement planning through our corp. Please hear our concerns in this area.Sincerely,