In an article entitled “Bonuses for Top Universal Health Services Executives Top $5 Million,” Ralph Walkling, Ph.D., Stratakis Chair in Corporate Governance and Accountability at Drexel University’s LeBow College of Business and Executive Director of the College’s Center for Corporate Governance, said he does not believe bonuses should be eliminated altogether. Companies just have to be very careful [that bonuses] don’t amount to gifts to executives at the expense of the shareholders, he said. Walking said shifting away from cash bonuses in favor of stock options, a strategy popular in the 1990s, has its own risks of executives trying to manipulate a company’s stock price through fraudulent means. Bonuses are an important part of compensation, but they are coming under increasing scrutiny, he said.
Dr. Walkling quoted in Philadelphia Business Journal