CEO Gets Pay Freeze for Plagiarism

May 4, 2006 ( - Raytheon Co.'s board voted to impose a compensation cut for CEO William Swanson in response to his unethical plagiarism violation.

The Boston Globe reports that the board voted to freeze his salary at its 2005 level and cut his new stock grants by 20% because Swanson failed to credit sources in his 2004 book of management sayings and mottos. The action will reduce his compensation by about $1 million for 2006.

Paul Hodgson, senior associate at the research firm Corporate Library, told the Globe, that it is highly unusual for a board to impose a financial sanction for an ethical violation. He said he can not remember another such instance.

However, Hodgson noted that the move was mostly symbolic since Swanson’s 2005 pay package totaled $7 million and included stock, a bonus, perks, and other pay.