Executive pay design and governance have undergone major reforms, but they continue to be a source of controversy. As a result, the role and actions of the compensation committee and boards of directors have been subjected to sharp criticisms. This study – conducted by Watson Wyatt Worldwide -- examines the opinions of directors and compares their views with those of institutional investors – who collectively own about 60 percent of corporate equities – in a 2005/2006 survey. One key finding: Directors and institutional investors agree (79 percent and 85 percent, respectively) that the executive pay model has hurt corporate America’s image.