CEO Pay Often Not Linked to Performance

Discussion in 'Economy' started by Toro, Oct 4, 2011.

  1. Toro
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    Toro Diamond Member

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    There is virtually no relationship between relative CEO pay and relative corporate performance. One reason is because CEO's aren't paid based on performance. They are paid relative to how other CEOs are paid.

    Cozy relationships and ‘peer benchmarking’ send CEOs’ pay soaring - The Washington Post

    There has been a fundamental breakdown in corporate governance in America.

     
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    Last edited: Oct 4, 2011
  2. Care4all
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    Care4all Warrior Princess Supporting Member

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    as a stock holder, I feel this practice hurts me and I believe it should stop!
     
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  3. expat_panama
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    expat_panama Silver Member

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    You bought stock that hurts. You say you 'believe' it should stop but you're not even thinking of, oh I don't know --maybe SELLING your stock? Sounds like one of those kinky setups where 'stop' means 'don't stop'.

    You know you don't have to pay for it, lots of places you can get it free...
     
  4. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    Well duh.

    Dick Fuld left Lehman after killing it with 20 million. Same with Jeff Wagoneer and GM.

    The last 2 CEOs of the company I worked for kept losing market share and fired a crap load of people. They still got over 10 million a piece every year.

    CEOs add very little value to their respective companies. It's a boy's club for the wealthy.
     
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  5. Mr Clean
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    Mr Clean Gold Member

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    Nice work if you can get it.
     
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  6. Toro
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    Toro Diamond Member

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    Actually, it sounds more like yourself. It doesn't matter how badly management is raping shareholders, shareholders should just STFU bitch and take it!

    Corporate governance in America sucks. It's rife with cronyism and often devoid of personal responsibility. I thought conservatives and libertarians were all for personal responsibility? Apparently, for thee but not for me!

    It's more than a little ironic that the best corporate governance in the world, where shareholders have the best rights and most control, is a place often derided by the American Right - Scandinavia. There, shareholders control the board, the nomination and compensation committees are appointed by shareholders, and there is only one insider on the board. If you do fine, great, you keep your job. If you suck, you're out. But in corporate America, shareholders have little voice. If you've stacked the board with friends and cronies, you can have such lousy performance, it would make a union highway worker blush, but at 400x the pay.
     
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  7. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    Damn..can't rep ya.. :lol:
     
  8. Againsheila
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    Againsheila Gold Member

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    Our retirement fund isn't run by us, it's run by my husbands employers. We don't get a say in which stock to invest in, we can't even sell when it's low and buy when it's high as there is a 48 hour turn over. I can hardly wait until he retires and we can take control of our own money.
     
  9. Mr Clean
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    Mr Clean Gold Member

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    That sounds like the kind of thing Enron was pulling.
     
  10. Oddball
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    Oddball BANNED Supporting Member

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    Yeah....And?

    During my brief foray into working in the corporate world, almost nobody's pay was based upon performance...In fact, if you performed too well and acted like you gave a shit, you'd usually run afoul of middle management types who had become fat, lazy and complacent in the corporate bureaucracy.

    So what else is new?
     

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