Microsoft recently revealed that its shareholders approved an $84 million compensation package for their CEO, Satya Nadella. Not bad for his first year on the job.
Satya is in good company, as many other executives have also been receiving generous pay packages. Accordingly to Equilar’s 2014 report on CEO pay, the median income for chief executives of the S&P 1500 is $5 million. For chiefs of S&P 500 companies, the median pay doubles to $10.1 million.
All of these millions made me wonder what, other than one’s imagination, are the limits on a board’s authority in creating a compensation package for an executive. The good news for executives is that a recent case from the Third Circuit – which encompasses Delaware,…