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The Role Of Compensation Committees In Corporate Governance ( August 2004 )
When the Enron, Worldcom, Tyco and related corporate scandals surfaced a few years ago, the immediate attention was on financial irregularities and their intended watchdogs: audit committees. Legislation, regulation and investor scorecarding have focused on the independence of audit committees and the assignment of specific responsibilities to those committees. However, simmering in the background before and throughout this period were concerns about executive compensation and the role of compensation committees in setting it.
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