This article outlines the few shareholders that have been successful in holding the executives pay. For example, 128,000 retires of Verizon were able to have the company to agree to reduce the stock options for executives when the company underperformed. An independent consultant suggests that many company boards are not giving new CEO's huge pay packages until they have proved themselves. The article also discusses the trouble with some methods of finding the best pay package for the chief executive: The corporate peer group. Utilizing a corporate peer group is supposed to pay a chief executive based off the practices of similar companies, however, it has turned into an "arms race."Some companies mirror the pay packages of firms that make more profit and are larger.
Link: http://www.nytimes.com/2013/04/07/business/shareholders-can-slow-the-executive-pay-express.html?hp&_r=0
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