OTHER NEWS - June 5, 1992

SEC Chief Says Pay-Curbing Efforts Could Hurt: Congressional efforts to limit executive pay packages through tax laws or setting legal limits may do more harm than good, the nation’s top securities regulator told a Senate panel. Alarmed by a 75% jump in executive pay the last decade, lawmakers are considering limitations. “The growing gap between executive compensation and the salary of the average worker, if allowed to continue, will breed cynicism and indifference,” Sen. Max Baucus (D-Mont.) said during a Senate Finance subcommittee hearing. Securities and Exchange Commission Chairman Richard C. Breeden said, “There is a justifiable sense of outrage,” but he maintained that efforts to cap pay could stifle risk-taking and eliminate corporate flexibility.