Future costs may be extremely high unless we begin funding necessary benefits. Shareholder value and Executive compensation are not in balance. Executive pay is growing much faster than dividend payout and stock value. We need a better compensation and value balance. Currently executive management recommends retainer fees, meeting compensation and retirement benefits for Directors.
Directors approve and fix salaries for executive officers.
Advisors could provide objective input into compensation and benefit recommendations for Directors and for Executive Officers. The recommendations of Advisors for compensation and benefits of Directors and Executive Officers would be from a Shareholder perspective. The directors of the Company are elected by shareholders to represent shareholders. The proposed paid advisory committee would create needless duplication and additional cost. The Committee uses data from various independent outside sources in making recommendations with respect to compensation and executive benefit plans to the full Board of Directors.