If there was any doubt, executive compensation is already emerging as 2004’s “lightening rod” for shareholders and institutional investors. This was underscored last week at DaimlerChrysler’s annual meeting, when the German-based auto giant bowed to U.S. concerns by voluntarily scrapping its stock option plan for its managers in favor of an incentive pay plan.
It is joining a small group of companies that have responded to demands from governance activists to link pay more closely to performance.
