WASHINGTON, April 1 (UPI) -- Executive pay at many U.S. corporations is headed in the opposite direction the Obama administration wants it to go, a recent study says.
In response to the financial crisis, the administration has tried to nudge corporations to pay more in stock that is redeemable after a delay to encourage executives to take more interest in the long-term health of their companies, The Washington Post reported Thursday.
But a recent study by the Corporate Library shows a preference for cash payments, which are thought to promote risk-taking behavior.
The study by the independent watchdog group shows that executives received
more perks in 2009 than in 2008.
"I see no indication whatsoever that the business community is paying any attention to the administration's suggestions," said Nell Minow, co-founder of the Corporate Library.
American Express switched pay to its chief executive officer from two-thirds stock in 2008 to two-thirds cash last year -- his cash compensation rising from $7 million to $11 million.
Corporations say government interference on pay issues reduces their ability to compete for talented executives, and that deferred pay subjects rewards to the whims of the marketplace.
