More execs call their CEOs’ pay excessive

An increasing number of executives say the heads of their companies are paid too much, according to a global survey released Tuesday.

Thirty-four percent of respondents to the survey by executive recruiter Korn/Ferry International expressed concern about their chief executives’ compensation. That compared with 21% a year earlier.

“If executives believe that CEO pay is appropriately set in relation to performance, they don’t have concerns,” said Russell Miller, managing director of Korn/Ferry’s Executive Compensation Advisors. “But when there’s a perception that pay is in the absence of performance, concerns are raised.”

Four out of five executives said shareholders should have some say on pay, and 55% said their CEOs’ compensation did not reflect or only somewhat reflected the companies’ results.

“You want to see someone get awarded for performance, not for longevity,” said Clover Capital Management Inc. fund manager Matthew Kaufler, who considers executive pay packages before buying a company’s shares. “Ideally you want to see aggressive but reasonable thresholds that need to be met.”

Korn/Ferry said 827 executives in more than 50 countries responded to its survey.

Companies are working to change the perception that top executives are paid too much when their employers aren’t performing well, Korn/Ferry’s Miller said.

“They’re working to reduce the pay as you leave and increase the pay for performance while you’re there,” he said.