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No parsley permitted: in compensation and succession oversight, the times require rising to a new level of everyday performance under extraordinary scrutiny.

Publication: Directors & Boards
Publication Date: 22-MAR-09
Format: Online
Delivery: Immediate Online Access

Article Excerpt
Irving S. Olds, chairman of U.S. Steel from 1940-1952, once opened a speech by declaring, "Directors are like the parsley on fish--decorative but useless."

Why do I resurrect such an appalling statement? Because there are two issues that fundamentally determine how parsley-like board members are-compensation and succession.

For far too long--even during brief bursts of reformation--boards have been criticized for being more decorative than useful in the rigorous crafting and application of pay for performance policies and in having a firm hand in CEO succession planning.

Events of this past year have cast a particularly harsh spotlight on pay abuses. The country had...

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