Moody's Investor Services Shows Link Between Excessive CEO Pay and Bond Defaults.
Moody's Investors Service examined 43 companies that defaulted on bonds between 1993 and 2003, Moody's found. Twenty-two of these companies had boards that offered chief executives much-larger-than-expected bonuses or stock option grants at least once. Of
214 cases of "large downgrades" CEO compensation was higher than expected in 140 cases.
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