Commerce Secretary: Judge and Party

The system used to set executive pay at U.S. companies works and does not need intervention from the federal government, the commerce secretary. Carlos Gutierrez, who served as chief executive of food group Kellogg for five years before being appointed commerce secretary in 2004, said in an interview with Reuters that corporate mechanisms for setting pay are fine as long as compensation packages are disclosed and tied to performance.

“The solution here is not to have the federal government start getting into compensation control,” Gutierrez said. (…)

Says…

Gutierrez (…) penned a separation deal with Kellogg in 2004 that included pension benefits starting in 2009, lump-sum payouts under two Kellogg investment plans and his 2004 annual bonus. The pension payments will total $1.3 million a year, according to the deal. (CNNMoney.com)