A recent survey of internal auditors suggests that the profession may not be giving executive compensation the scrutiny it deserves, despite mounting pressure from regulators, Congress, and the public to reign in bloated pay packages.
The study of nearly 200 internal audit professionals, conducted by the Institute of Internal Auditors, asked whether companies conduct a holistic review of executive pay and benefits. Forty-nine percent of respondents answered with a firm “no.” Another 45 percent said that they did conduct such audits—but within that group, only one-third of them said the internal audit team led those reviews.
Those results appear alarming ...