Financial Times FT.com

Disparity ‘sign of corporate malaise’

By Francesco Guerrera and Daniel Pimlott

Published: October 7 2007 22:03 | Last updated: October 7 2007 22:03

When, in November last year, Jeffrey Immelt said that paying chief executives wildly more than their senior managers was “lunacy”, he probably did not realise he was opening a fresh debate on a thorny issue for corporate America.

Since those comments by the head of General Electric, the question of “internal pay equity” – the gap in compensation between chief executives and their most senior underlings – has climbed up the corporate governance agenda.

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