Executive pay is not based on results.

[finnbow]

Originally Posted by whell

Why should it matter to you what someone else makes....unless you're envious...

... or a stockholder in the company.

[d-ray657]

Originally Posted by whell

Why should it matter to you what someone else makes....unless you're envious...

or an employee with stagnant wages - or worse yet, laid off. Or a consumer whose choices in products becomes limited because CEO's justify soaking the company by cutting expenses - other than executive salaries.

Regards,

D-Ray

[merrylander]

Originally Posted by whell

Why should it matter to you what someone else makes....unless you're envious...

Because my wife's medication cost has risen at over 10% per year to where it is double in price, no doubt all toe pay the salary of the CEO.

[whell]

The shareholders understand the concept of buying talent, and the concept of ousting a CEO when he/she fails to maximize shareholder value.

[Oerets]

Originally Posted by whell

The shareholders understand the concept of buying talent, and the concept of ousting a CEO when he/she fails to maximize shareholder value.

"O" if that were true, but the majority of the voting stock in a company is held by very few people. Those few people run in the same circles so I venture to say voting a poor performer out will not happen to often. Just give them a golden parachute and move on.

Were do you think the mega millions in salary's come from anyway? Out of thin air? No out of yours and my pockets.

Now if the people who own stock were to vote only once no matter how many shares they own it might be different.




Barney

[whell]

Originally Posted by Oerets

Were do you think the mega millions in salary's come from anyway? Out of thin air? No out of yours and my pockets.

Barney

Did an evil CEO show up at your house and steal money out of your pocket?

[finnbow]

Originally Posted by whell

Did an evil CEO show up at your house and steal money out of your pocket?

Nope, he had his handpicked Executive Compensation Committee do the dirty work for him.

[Oerets]

Originally Posted by whell

Did an evil CEO show up at your house and steal money out of your pocket?

Yes they did! In the form of a letter I received touting how smart they were in figuring how to get out of paying retirement benefits.

Robbed the company bind then gave a golden parachute to 12 or 13 VP's of multi millions.

Then filed for bankruptcy to get out of paying retirement letting the U.S. Government pick up the tab. Of course no healthcare benefits until you are able to receive Medicare.


But the company is still operating and making money now! Just doesn't have to pay out what they promised to the employees.




Barney

[d-ray657]

Originally Posted by Oerets

But the company is still operating and stealing money now! Just doesn't have to pay out what they promised to the employees.




Barney

Fixed it for you.

regards,

D-Ray

[d-ray657]

Originally Posted by Oerets

"O" if that were true, but the majority of the voting stock in a company is held by very few people. Those few people run in the same circles so I venture to say voting a poor performer out will not happen to often. Just give them a golden parachute and move on.

Were do you think the mega millions in salary's come from anyway? Out of thin air? No out of yours and my pockets.

Now if the people who own stock were to vote only once no matter how many shares they own it might be different.




Barney

I seem to recall something called a derivative action by shareholders. When board members fail in their fiduciary duty to the corporation, shareholders can bring suit to enforce the duty. As I recall, the shareholders can't get damages, but they can get equitable relief to enjoin the conduct that is in breach of the duty. When one with a fiduciary duty - i.e. a board member - has a conflict of interest that would prevent the exercise of impartial judgment, that is close to an automatic breach of fiduciary duty. The folks in the article cited by Finn clearly had such conflicts. If the laws were actually enforced, the back-scratchers on these boards might start watching their own backs.

Regards,

D-Ray