Senator Levin Considers Defense Exec Pay CutsApril 10, 2009

 

The furor over Wall Street executive pay has now sparked a debate about compensation at defense companies, according to an article in The Hill.

"I think we need to deal with executive compensation in this country in a lot of ways, but I would not separate the defense industry out — I would include them in the way we deal with it," Carl Levin (D-Mich.), the Senate Armed Services Committee chairman, said at a press conference. He lamented the "huge gap" between the pay of executives and the average worker. Levin singled out stock options as the reason for this widening gap. He said there are several ways to rein in CEO pay, including a change in the tax code and having stockholders exert their influence.

Defense companies attracted attention at the height of the Iraq war when their profits and executive pay soared. As the outrage over Wall Street pay has grown, several of the largest defense contractors, including Lockheed Martin, have altered their compensation plans, according the article.