In Executive Pay
To the Editor:
Our organizations read with interest Gretchen Morgenson’s analysis of how employees are joining in shareholder attacks on executive paypackages (“Employees, Too, Want a Say on the Boss’s Pay,” Fair Game, April 22).
But this concern also extends to consumers. In California, consumer groups have sought to require all public-utility rate increases as they relate to executive compensation to be subject to a ratepayer advisory vote. This vote would be based on a random sampling of 1,000 ratepayers, conducted by an independent pollster. Ultimately, consumers are affected as much as shareholders by excessive executive pay, because it fuels bloated budgets and executive lifestyles that consumers must eventually pay for, directly or indirectly.
In the case of a bank, this might be through higher fees on checking accounts, for example. For a gas or electric utility, however, it can mean higher rates.
Mr. Canty is chairman of the Black Economic Council, based in Oakland, Calif., and Ms. Bautista is president and chief executive of the National Asian American Coalition, based in San Bruno, Calif.