More executives think CEO pay is too high: study

By Chelsea Emery

NEW YORK (Reuters) - In another sign of growing demand for tightened oversight of CEO compensation, more executives are saying the heads of their companies are paid too much, according to a global survey released on Tuesday.

As outrage grows against what many perceive as exorbitant pay packages for underperforming chief executives, top employees at the companies are also airing their dismay.

Thirty-four percent of respondents to the survey by executive recruiter Korn/Ferry International expressed concern about their CEOs' compensation. That compares with 21 percent a year ago.

"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 percent said their CEOs' compensation did not reflect or was only "somewhat" reflective of the companies' results.

"You want to see someone get awarded for performance, not for longevity," said Clover Capital Management 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."

An average 827 executives from more than 50 countries responded to Korn/Ferry's questions on executive pay trends.

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