Directors and institutional investors don't agree on whether the executive pay system has produced better performance. But they do agree on one key point: it's resulted in CEOs getting paid too much, according to the Watson Wyatt 2008 Report on Directors' and Investors' Views on Executive Pay and Corporate Governance.

The study found that 61 per cent of directors and 86 per cent of institutional investors said the model had led to excessive executive pay levels. It also found that 60 per cent of directors and 78 per cent of institutional investors said it was creating resentment in the workplace.

Significantly, 75 per cent of each group said the executive pay model has damaged corporate America's image abroad. Not good politically or economically.

While most directors seem to think the system is improving, most institutional investors don't agree. Clearly, there's a long way to go.