Executive Comp To Be Major Issue In 2004

William J. McDonough, chairman of the Public Company Accounting Oversight Board (PCOAB) warns directors of U.S. public companies that the Sarbanes-Oxley Act may be just the beginning if they don't act quickly and effectively to curb excesses, reports ISS.

Voter are pressing their legislators for action to reign in excessive compensation for senior executives. The legislators are actively searching for solutions, including more laws. If businesses don't act, congress will.

Said McDonough, "If I were a chief executive officer I think I would have enough survival sense to say, ‘I think my board should take a quick look at things, and how much I was making the last two or three years was irrelevant.' It's what makes sense now."

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