Chuck Grassley: “In my mind, executive pay should be tied directly to company performance and to profits. If the company had a great…”

“In my mind, executive pay should be tied directly to company performance and to profits. If the company had a great year, earned big profits and enjoyed other successes, then the chief executive should enjoy the fruits of his labor. A big year should equal a big pay check. A bad year might mean a pay cut. The profit figures cited above are for calendar year 1995. During that period, only McDonnell Douglas suffered a loss. The company took a loss of $416 million. But guess what? That loss did not keep the company's top executive from drawing a bigger paycheck. The top boss' base pay went from $1.6 million in 1994 to $1.9 million in 1995, including a bonus of $1,042,400. But that is not all. McDonnell Douglas' chief executive, Mr. Harry C. Stonecipher, received a very generous share of company stock. Mr. Stonecipher got cash and stock valued at a staggering $34 million--in 1995 alone. The other top executives at McDonnell Douglas also received handsome bonuses.”