With the ongoing economic downturn, the majority of outside directors believe American companies need to change their executive pay programs. Seventy percent of directors believe executive pay opportunity will decline over the next two years. More than one in three companies has already reduced salaries, target bonuses and/or long-term incentive award levels. However, most directors think legislation and public pressures will not lead to improved pay for performance over the next two years. Directors are placing more emphasis on performance-based plans.