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To: FaultLine who wrote (2)	9/11/2002 10:41:15 PM
From: maceng2	Read Replies (1) \| Respond to of 1417

Thankyou -g-. William McDonough President of the Federal Reserve has an answer to some pressing problems. ananova.com Fed chief tells big business to slash 'fat-cat' pay The president of the Federal Reserve used a September 11 commemoration speech to call on corporations to cut the pay of executives. William McDonough says CEOs and their boards should realise that "executive pay is excessive". He attributed the rise in pay to the perception that high levels of compensation prompted executives to find ways of increasing shareholder value. But he added: "It is reasonably clear now that this theory has left a large number of poorer stockholders... not only unconvinced, but understandably disillusioned and angry." He cited a recent study showing the average chief executive makes more than 400 times the pay of a production worker, up from 42 times 20 years ago. In the speech at Trinity Church in lower Manhattan, Mr McDonough said: "Beginning with the strongest companies, CEOs and their boards should simply reach the conclusion that executive pay is excessive. "Sadly, all too many members of the inner circle of the business elite participated in the over-expansion of executive compensation," he said, which turned out to be "terribly bad social policy and perhaps even bad morals". He called on companies to adjust pay to "levels truly related to the benefit of shareholders and other stakeholders such as workers and the community". He added, however, that it is not up to the government to legislate on pay, but for companies to solve the problem voluntarily. Pearly@andhowmuchishepaidanyway.com