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NEW YORK (AP) - Shareholders who complain that executive pay is getting out of control have a new tool for pressing their case: They are demanding that companies spell out why their top brass deserves generous rewards.
Corporate boards like to tout the idea that pay is directly linked to performance, and most shareholders have no quarrel with that premise. What they don't like is when companies fail to disclose how they calculate pay, often using "competitive factors" as a justification.
It's a lame excuse. Sticking with it will only result in intensifying pressure from investors to knock down executive compensation and give them more of a say over its size.
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