What does Jimmy Lee ’75 have in common with Katie Couric and Chipper Jones? A mention in the New York Times!
In addition to large paychecks, people like Katie Couric of NBC, the Atlanta Braves third baseman Chipper Jones and James B. Lee Jr., a J. P. Morgan Chase investment banker, have something else in common.
Under a proposal by the Securities and Exchange Commission, their entire pay packages may be made public, along with those of the senior executives at the companies where they work.
Buried in the proposed reporting regulations – the most significant overhaul of compensation disclosure rules in more than a decade – is a change in whose pay packages companies will now have to make public.
Current rules require that companies disclose the compensation of the chief executive and the next four highest-paid executives in management. The new rule, which is expected to be adopted in a few months, will require companies to disclose the pay, severance, bonus, stock and option grants, and retirement packages of the chief executive, the chief financial officer, the next three highest paid executives – and as many as three other employees who receive more than any of the first five.
The proposal permits companies to omit the identity of any the three highly compensated employees and simply list their job titles. But it is likely to sweep in stars like Ms. Couric, Mr. Jones and Mr. Lee as well as highly successful bond traders, top salesmen, studio heads, financiers and athletes.
Of the three, I would wager that Lee is paid the least, but we will know soon enough. The Alumni Office will be more than a little interested. And, to counteract my reputation as a rightwingnut, I’ll point out that my suggestion on how to deal with execessive executive pay is much more radical than any Democratic proposal.