【正文】 s should not be allowed as chairs of the board of directors because this raises agency problems and causes possible conflicts of interest. Current legislation requires that all members of the pensation mittee who are not independent be disclosed (). However, this legislation does not go far enough. Executives should not be allowed to hold the chairman position on the board of directors. There should be a separation of power and a system of checks in balances within the corporate 14 governance structure. Although it is not clear on how issues such as corporate governance and agency problems will be dealt with, one thing that is clear is that the public has grown disenchanted with the current system. In order to maintain public confidence, major changes must occur to encourage accountability and disclosure within the area of executive pensation. 15 Works Cited . Golden CEO Retirements. Anderson, Sarah and John Cavanagh. Executive Excess 2021. Institute for Policy Studies. 2021. Associated Press. SEC Moves to Require More Disclosure on Executive Pay. 2021. Balsam, Steven. An Introduction To Executive Compensation. San Diego: Academic Press, 2021. . Wall $t. Bonuses Balloon to New Record. 2021. Hall, Brian, and Kevin Murphy. The Trouble With Stock Options. National Bureau of Economic Research .. 2021 Hodgson, Paul. Incentivizing Michael Eisner. Fortune. 2021. Masers, Brooke. A Campaign to Tighten Executive Pay. Washington Post: 2021 Plitch, Phyllis, and Dwight Oestricher. Disney Moves to Give Shareholders More Say in Board Votes. Dow Jones News Service. 2021 Norris, Floyd. Stock Options: Do They Make Bosses Cheat? The New York Times: 2021. SEC Votes to Propose Changes to Disclosure Requirements Concerning Executi ve Compensation and Related Matters. The Corporate Library. CEO Golden Years: The Top 25 Largest CEO Pensions. WSJlMercer. The WSJlMercer 2021 CEO Compensation Survey. The Wall Street Journal. :2021 。s performance. The measures should consist of shortterm and longterm objectives. This is to prevent CEO39。 pensation (Associated Press). Furthermore, members of the pensation mittee that are not independent must be disclosed (). Finally, panies would be required to explain the objectives behind their executives39。s chairman, chief financial officer and the next three highest paid executives (Associated Press). Other provisions of the new legislation include: the reduction of the level at which executive perks must be detailed from $50,000 to $10,000, and disclosure of executives39。s pay (Anderson). As executive pay continues to grow this ratio continues to get larger as employee pay remains relatively stagnant. This can be observed directly from Figure 1 which plots the growth of executive pensation against the growth of employee pensation. The graph shows that employee pensation has been relatively stable, whereas executive pensation has experienced significant growth. Employee pensation has not even kept pace with inflation in recent years, as can be seen by the relationship of CPI to employee salaries. It can also be observed that executive pensation varies directly with corporate profits, but is not as volatile. This can be attributed to the variable pensation ponents of an executive pensation package such as bonuses, stock options, and stock grants. However, some experts question as to whether the use of 12 variable pensation such as stock options is really in the pany39。s contribution is defined by the plan and the employee may add to it (Balsam 175176). Recent cuts in employee pensions by major panies have brought pensions to the public spotlight. As mentioned earlier, Michael Eisner still draws an annual pension payment of $297,779 from Disney (Plitch). However this seems like nothing when pared to the annual payment of $6,518,459 to Pfizer executive Henry McKinnell (The Corporate Library). Recently, similar to Eisner, Mckinnell was the target of a Vote No campaign by Pifzer shareholders and up to 22% of shareholders withheld their support from board members that supported Mckinnell39。s stock and have no exercise price (Balsam 38). Stock grants are either classified as restricted or unrestricted。 although, amid corporate scandal in 2021 more than a 100 panies began to report using FAS 123 (HallMurphy). The reason that so