Appearing in New York on Wednesday primarily to tout the healthy state of the economy, President Bush called on boards of directors to curb excessive executive pay and bring greater value to shareholders, the Associated Press reports. The president made his remarks outside the New York Stock Exchange, standing at Federal Hall.
Bush said news reports of excessive salaries create anger and uncertainty among investors.
“America’s corporate boardrooms must step up to their responsibilities,” he said. “You need to pay attention to the executive compensation packages that you approve. You need to show the world that America’s businesses are a model of transparency and good corporate governance.”
Meanwhile, Rep. Barney Frank (D-Mass.) is about to introduce legislation that would require shareholder approval of executive compensation plans.