CEO Pay

[anklebreaker]

Tournament theory.

Why your boss is overpaid
Dueling for Dollars

[jogsxyz]

Align the CEO's pay to that of the rank and file workers. The workers must be doing something right, when the company is doing well.

[TomCollins]

[ QUOTE ]
Align the CEO's pay to that of the rank and file workers. The workers must be doing something right, when the company is doing well.

[/ QUOTE ]

Sheep are definitely worth the same as a shepherd.

[Smasharoo]

Sheep are definitely worth the same as a shepherd.

They are worth much more than the shepherd, actually. Fantastic example.

I realize it's astonishingly hard to find an actual real world one that works, because CEO pay is just one of the more obvious corruptions of capitalism, and trying to make the case that somehow there is a rational value to paying so much to one person grossly out of proportion with the impact they have on profitability must be fairly challenging.

CEO pay by boards in most large companies is blatant self serving greed and nothing more. CEOs sit on other boards and vice versa and approve each other's compensation regardless of performance. Frankly it makes congressional pay raises look noble and modest in comparison.

[natedogg]

[ QUOTE ]
[ QUOTE ]
On its face CEO pay seems exorbitant.

[/ QUOTE ]

Many of the top tier, and even down from it, are more than exorbitant. They are totally unjustifiable!

[/ QUOTE ]

Unjustifiable to whom?

Ask GM or GE about the value of a good CEO.

natedogg

[TomCollins]

[ QUOTE ]

Sheep are definitely worth the same as a shepherd.

They are worth much more than the shepherd, actually. Fantastic example.

I realize it's astonishingly hard to find an actual real world one that works, because CEO pay is just one of the more obvious corruptions of capitalism, and trying to make the case that somehow there is a rational value to paying so much to one person grossly out of proportion with the impact they have on profitability must be fairly challenging.

CEO pay by boards in most large companies is blatant self serving greed and nothing more. CEOs sit on other boards and vice versa and approve each other's compensation regardless of performance. Frankly it makes congressional pay raises look noble and modest in comparison.

[/ QUOTE ]

Sheep without a shephard are wild animals. How are you going to get ANY value out of them?

[Smasharoo]

Sheep without a shephard are wild animals. How are you going to get ANY value out of them?

A car without gasoline can't go two miles. Therefore a gallon of gasoline is worth more than a BMW.

Gotcha. Iron trap logic as always.

[natedogg]

[ QUOTE ]

Sheep without a shephard are wild animals. How are you going to get ANY value out of them?

A car without gasoline can't go two miles. Therefore a gallon of gasoline is worth more than a BMW.

Gotcha. Iron trap logic as always.

[/ QUOTE ]

If your analysis is correct, you should be able to make a fortune consulting to publicly traded companies about how to seek and retain CEOs.

What's stopping you?

natedogg

[TomCollins]

[ QUOTE ]
[ QUOTE ]

Sheep without a shephard are wild animals. How are you going to get ANY value out of them?

A car without gasoline can't go two miles. Therefore a gallon of gasoline is worth more than a BMW.

Gotcha. Iron trap logic as always.

[/ QUOTE ]

If your analysis is correct, you should be able to make a fortune consulting to publicly traded companies about how to seek and retain CEOs.

What's stopping you?

natedogg

[/ QUOTE ]

Apprently trolling internet forums is more profitable.

[pvn]

[ QUOTE ]

Sheep are definitely worth the same as a shepherd.

They are worth much more than the shepherd, actually. Fantastic example.

I realize it's astonishingly hard to find an actual real world one that works, because CEO pay is just one of the more obvious corruptions of capitalism, and trying to make the case that somehow there is a rational value to paying so much to one person grossly out of proportion with the impact they have on profitability must be fairly challenging.

CEO pay by boards in most large companies is blatant self serving greed and nothing more. CEOs sit on other boards and vice versa and approve each other's compensation regardless of performance. Frankly it makes congressional pay raises look noble and modest in comparison.

[/ QUOTE ]

Are you forced to pay a CEO obscene amounts of money?

If these problems are as bad as you say they are, couldn't you start a business with a better model and lay waste to your competitors still using this crappy model? You wouldn't even need to innovate anything, you could just enter any market with your lean, el-cheapo executive team and clean up.