Compensation: Getting The Message

Getting The Message

Stockholder gripes about executive greed are beginning to make dents in the armor of some of the nation's top brass. A proxy statement revealed last week the first application of Westinghouse Electric's tough pay-for-performance system, which slashed the income of CEO Paul Lego and 13 other top officers by as much as 62%. With that response to the company's $1 billion loss on nearly $13 billion of sales last year, Westinghouse joins IBM, which cut the compensation of chairman John Akers and four of his colleagues by 40% and took smaller cuts from 60 other executives after Big Blue's first annual...