Boardroom Perks: You Get What You Pay For

Corporate perks and "sweetheart deals" have become a U.S. boardroom scandal. But that may be price of paying our corporate directors too little.

(PRWEB) January 4, 2004 --Conflicts of interest have long been taboo in government, and business scandals and tough new laws have made self-dealing dangerous in the extreme for top executives. But in the cozy world of the corporate boardroom, one hand washes the other" has been and remains the rule.

In the January issue of Boardroom INSIDER, Ralph Ward, publisher of the online monthly, notes that goodies like law firm and consulting work, seats on each others boards, sweetheart business deals and use of corporate aircraft are basic elements of the boards clubby history." Most such logrolling is benign, Ward notes, but too often tips into corruption (witness Tyco Corporation illegally paying one board member $20 million for help with an acquisition). Also, Ward observes that such self-dealing is one result of paying directors at a low, almost stipend, level. If we really want to end the culture of boardroom benefits, we should start treating (and paying) board service as a real job."

Also in the January issue of Boardroom INSIDER:
[] New IRS pay and perks rules hit in the boardroom.
[] 5 must haves" for shaping your board tech policy.
[] The new world of CEO succession planning.
[] Best practices for family business boards.