Quote:
Originally Posted by simi
I think a big part of the problem is there are only so many available CEO's to run these huge companies, that they can write their own contract and pay. Granted, a company could hire someone that hasn't beena a huge CEO, but then they are taking big risks. Companies don't like to look like they are taking that kind of risk, nor look like they are hiring someone that isn't up to doing the job. So, in order to get the big name, they have to pay stupid money.
A lot of companies aren't even basing raises for their employees on productivity and ability. A lot are giving a flat raise across the board. Not only can me and you see what's wrong with that, but I believe it causes a company to do even worse. The people that worked the hardest start backing off their productivity once they realize their hard work is getting them no where.
Really makes you wonder how these big CEO's can demand what they do, because it sure seems like their thinking is pretty flawed and they can't even see the simple...
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I concur. In fact, you saved me some typing. I also think that just because a CEO did well in one industry doesn't mean they will do well in another. It does take some modicum of success to become a CEO in most cases. How much is someone like, say, Steve Jobs, worth to Apple? Ultimately, the BOD is responsible for the contract of the CEO.