Fed's McDonough Calls for CEO Pay Cuts

Doug Henwood dhenwood at panix.com
Wed Sep 11 11:49:17 PDT 2002


pms wrote:


>NEW YORK (Reuters) - New York Federal Reserve President William McDonough on
>Wednesday called on U.S. corporate executives to take pay cuts, saying their
>salary packages are bloated and morally hard to justify.

When McDonough became president of the NY Fed, he almost immediately convened a conference on income distribution. Gossip was that he was worried that polarization could lead to an upsurge of populism, which might mean political constraints on the Fed's independence. Regardless of the reason, however, it's something he seems to care about.

Doug



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