Blurb from the IBJ:
This illustrates the point I have been making, namely that corporate boards are filled with CEOs and highly paid executives of other companies who have no incentive to hold the line on CEO pay and bonuses. Those high-level executive types want higher pay not because it's good for stockholders but because increasing their fellow CEO pay means they too could see an increase. It is a "you scratch my back and I'll scratch yours" mentality when it comes to the CEO pay.
Simon Property Group Inc. has named former WellPoint Inc. leader Larry Glasscock to its board of directors, the Indianapolis-based real estate giant announced this week.
Glasscock served as chairman of the board at WellPoint, the Indianapolis-based health care insurance provider, from 2005 until this month. He was CEO of WellPoint from 2004 to 2007, and CEO of Anthem Inc. from 2001 to 2004.
Glasscock, 61, also serves as a director at Zimmer Holdings Inc. and Sprint Nextel Corp.
This is a point where I differ from my Libertarian friends. I think we need regulations in place to prevent CEO-types from sitting on other corporate boards. Depending on the stockholders to police this practice through their vote is not a realistic safeguard to the abuses that happen when boards are filled with the CEO's corporate friends.