Lobbyists as Directors Test Rules for Corporate Boards

At Louisiana health-care company LHC Group Inc., the board’s compensation committee has approved a 90% raise for the chief executive over two years and given him personal use of the company plane. Members of compensation committees must be independent directors with no financial ties to the company or its executives, say rules adopted after the financial crisis. At LHC, however, two of the committee’s three members are lobbyists for LHC, which foots the bill for their work. The two are former Sen. John Breaux and former Rep. Billy Tauzin, both of Louisiana. The 2010 requirement that only independent directors can set executive pay at most public companies was the latest in a string of efforts by Congress, regulators and stock exchanges to make sure people who hold important roles on corporate boards are free of potential conflicts of interest that could sway their judgment.

filed under: Uncategorised

0 thoughts on “Lobbyists as Directors Test Rules for Corporate Boards”

Comments are closed.