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.


For more information, click here.