Unions may not be the ideal solution for economists and capitalists, but they are one of the best ways to control executive compensation. At least that is the argument presented by Rafael Gomez and Konstantinos Tzioumis of the London School of Economics. A study conducted by the two found that union presence lowered CEO compensation by 10 percent, and the number rose when it was a CEO whose pay was in the top 10 percent.

The compensation is kept in check through the collective bargaining process that acts as a counterbalance - that is, when executives get a raise, the union sees it as a sign that the company is healthy and they deserve a raise. Also, Wall Street tends not to prefer unionized companies and therefore, lower stock prices mean less value for stock options granted to the CEO.

VeriFone (NYSE:PAY) announced yesterday that the company would be restating its financial results for 2007 following a misevaluation of the company’s manufacturing and distribution overhead that affects the cost of revenues. Interestingly, the CEO’s planned sales of 43,300 shares just last week may make for an interesting coincidence. Meanwhile, the options market paints a picture of many insiders knowing that something was going to go wrong soon – with the number of puts open hitting a high.

The SEC recently published its comprehensive review over the disclosure of 350 public companies for compliance with the new rules on executive compensation. Every company received a comment letter, which will be published along with the company’s response on the SEC’s EDGAR system within 45 days after the SEC completes its review.

So, what did the SEC find in its reviews? Well, the SEC commented that very few companies have disclosed details regarding their performance-based compensation, specifically their performance targets. These comments on performance targets by far surpassed comments in any other areas. In fact, only 45 of the top 100 companies disclosed the required specific targets. As well, many companies disclosed that they hired compensation committees but failed to tell investors how these committees analyzed executive compensation to determine appropriate amounts.

The SEC does not expect to make any additional rules in 2007 as they continue to review the effectiveness of this first major proxy season.

John A. Thain, the new chief executive of Merrill Lynch, is set to receive an initial pay package of nearly $50 million as he embarks on a quest to restore the firm's reputation and risk management practices after a devastating few quarters of subprime and credit losses. The pay package is largely composed of stock and options that could be worth more than $120 million if MER stock rises more than $40 a share in the next two years. The pay, disclosed in a regulatory filing today, will make the executive one of the highest paid on Wall Street. It is also three times what he earned over his first three years running the New York Stock Exchange and may approach the pay level of hedge fund traders and top executives at Goldman Sachs, where Thain previously worked.

Verizon Communications agreed to put the company’s compensation plans to an annual vote by investors beginning in 2009 after shareholders pressured the company over executive compensation. The decision came after over 50% of shareholders came out in support of a “say on pay” proposal suggested by BellTel Retirees. The vote will give shareholders the right to cast a non-binding vote that will serve as guidance for the company’s board to make compensation decisions.

C. William Jones, executive director of BellTel Retirees, said he was pleased with the board’s decision but somewhat puzzled as to why they are delaying it till the 2009 meeting. Executive compensation has rocketed in recent years with Verizon’s CEO netting $20 million – an 11% increase over 2005.

Aflac's board of directors agreed to move up the adoption of the "say on pay" proposals to 2008. This new proposal would give shareholders the right to cast a non-binding advisory vote on the company's pay-for-performance compensation of the top five named executive officers. Aflac was the first US company to adopt such a resolution but it was not scheduled to be put into practice until 2009.

"We believe that our shareholders have embraced the expanded disclosure on executive compensation and it gives them the information they need to make an informed decision as they weigh pay versus performance," said Dan Amos, Aflac chairman and CEO. "Aflac has a long history of generating strong returns for its shareholders and we remain committed to being transparent and responsive to our owners."

Micron Technology (NYSE:MU) chief executive Steven Appleton received $8.6 million in fiscal 2007, according to a proxy statement filed today. Appleton took hom $948,169 in base salary and restricted stock worth $7.6 million on the days that they were awarded. The executive also took home $63,157 in other compensation including 401k contributions and payment for unused time off. Is this pay justified? Well, last month the company reported a fiscal and full year loss after a profitable 2006. The company posted a loss of $320 million down from a profit of $408 million last year. Apparently not.

Dell chief Michael Dell took home just $4.5 million during his first year behind the wheel of Dell since he gave up control. The returning CEO failed to qualify for a raise or any incentive bonuses in addition to his $950,000 in salary, company-paid security, and option awards. Michael Dell also saw his $6.6 billion in company stock slide a little more over the past year before rebounding slightly in recent months. It is worth noting that Dell's compensation is substantially less than the $8.5 million paid to former CEO Kevin Rollins during the 2007 fiscal year. But then again, how much does a man really need to live on?