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Executive Salaries: How Much Is Too Much?
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Liberty Mutual, based right here in Boston, ranks 82 in the list of Fortune 500 companies. Former CEO Ted Kelly received a $50 million compensation package for the last four years.
But Liberty Mutual isn't a for-profit company.
Its owned by its policyholders, not shareholders. So, for a company owned by those whom it serves, how right is it for the top level executives to be paid salaries with that many zeros in them? And who oversees this compensation plan?
Guests:
- Elizabeth Keating, expert in executive compensation in nonprofit organizations
- Jay Lorsch, professor of human relations at Harvard Business School and author of "Back to the Drawing Board: Designing Boards for a Complex World"
This segment aired on April 30, 2012.