Executive pay becomes political
Companies facing financial hardship and that seek to pass off that cost to the consumer are seeing greater public scrutiny for the money they pay their executives. For example, energy companies who provide energy to Illinois - the Ameren Corporation and the Exelon Corporation - have been subject to a rate freeze in 1997. The freeze is set to end in 2007, but members of both political parties got involved because once the freeze ends, company executives stand to enjoy stock option gains simply because consumers are paying more for electricity.
Many argue that energy companies like Ameren, who’s shareholders approved a new a considerably more generous stock incentive plan for its top executives and high level managers, sought to engineer a windfall as a result of anticipated rate increases.
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