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.