Excessive CEO pay, part of the problem for American Corporations.

Discussion in 'Economy' started by 52ndStreet, Dec 11, 2008.

  1. 52ndStreet
    Offline

    52ndStreet VIP Member

    Joined:
    Jun 18, 2008
    Messages:
    2,883
    Thanks Received:
    147
    Trophy Points:
    83
    Ratings:
    +170
    We saw recently, the Home Depot, give a large seaverence bonus to a departing CEO, when the Home Depot had been loosing money for the last 2 years.
    I tell you all, excessive CEO pay is part of the problem for American corporations.

    Many of these CEO,'s don't know what the hell they are doing, the workers are never paid a livable wage, and are not really motivated. Corporations would be better served by paying their workers,not the CEO.Take care of your workers, is
    why Japan continues to make better cars, and products than America.The Japanese corporate focus is on the Workers, not the CEO.! It is the workers that
    ultimately make or break the corporation in the long run, not the CEO.
     
    Last edited: Dec 11, 2008
  2. Southpaw
    Offline

    Southpaw Member

    Joined:
    Dec 9, 2008
    Messages:
    149
    Thanks Received:
    22
    Trophy Points:
    16
    Location:
    Texas
    Ratings:
    +22
    I don't have a problem with CEOs making a lot of money but you have some particularly good points here.
     
  3. Steerpike
    Offline

    Steerpike VIP Member

    Joined:
    Dec 17, 2007
    Messages:
    1,847
    Thanks Received:
    182
    Trophy Points:
    83
    Ratings:
    +182
    It still comes down to the corporation's fault as a whole. The Board are the ones that approve these high-priced contracts for CEOs.
     
  4. RodISHI
    Offline

    RodISHI Gold Member

    Joined:
    Nov 29, 2008
    Messages:
    10,392
    Thanks Received:
    1,858
    Trophy Points:
    280
    Ratings:
    +5,047
    Do you have any figures for that recent event?

    I do agree in many cases CEO's collecting millions before and after a company that is publicily traded goes broke or fails to make a profit is a problem.
     
  5. Richard-H
    Offline

    Richard-H Gold Member

    Joined:
    Aug 19, 2008
    Messages:
    2,285
    Thanks Received:
    385
    Trophy Points:
    130
    Ratings:
    +510
    It's not just the CEOs. It's the entire executive staffs that are getting overcompensated. They're all scratching each others back in a game that amounts to pure pilfering! Not a damn thing stock holders or workers can do to stop it.
     
    • Thank You! Thank You! x 1
  6. Bern80
    Offline

    Bern80 Gold Member

    Joined:
    Jan 9, 2004
    Messages:
    8,094
    Thanks Received:
    720
    Trophy Points:
    138
    Ratings:
    +726
    I am inclined to agree. At the same time I don't see an alternative. If we claim to be a freedom loving society we really don't want to go down the road of mandating a limit on what people can make.
     
    • Thank You! Thank You! x 1
  7. BaronVonBigmeat
    Offline

    BaronVonBigmeat Senior Member

    Joined:
    Sep 20, 2005
    Messages:
    1,185
    Thanks Received:
    160
    Trophy Points:
    48
    Ratings:
    +160
    As long as we're free to chose other companies, the problem solves itself.
     
  8. Paulie
    Offline

    Paulie Platinum Member

    Joined:
    May 19, 2007
    Messages:
    31,551
    Thanks Received:
    4,854
    Trophy Points:
    1,130
    Ratings:
    +15,397
    Exactly. It's US who're paying these salaries. Our business is giving these companies the money to pay their executives exorbitant salaries.

    I liken a high paid executive to a high paid sports figure. If an exec is running a company to prosperity, they probably deserve that kind of money in proportion to the profits they're bringing in to the company, much like a high paid, well-performing athlete brings profits into their sports team through fan attendance, merchandise sales, etc.

    When you run a company into the ground, however, you certainly don't deserve extra money for it, much less a job still. But the market will eventually determine what the CEO is worth, when they're out of a job and no other corporation wants them on their board.
     
  9. Zoomie1980
    Offline

    Zoomie1980 Senior Member

    Joined:
    Jan 16, 2008
    Messages:
    1,658
    Thanks Received:
    128
    Trophy Points:
    48
    Ratings:
    +128
    Generally I like to see markets adjust executive pay as it see's fit. When shareholders have enough they can revolt....

    But over-compensation has become such a deeply ingrained cultural phenomena I just don't think the market effects it anymore. They pay themselves REGARDLESS of what their companies do or shareholders want.

    I sense, though the common shareholder is becoming more activist and instead of just throwing that voting ballot in the garbage many are using it to vote against continuance in some cases.

    But something has to be done to bust executive comp back to historical levels as it compares to the worker wages.
     
  10. 52ndStreet
    Offline

    52ndStreet VIP Member

    Joined:
    Jun 18, 2008
    Messages:
    2,883
    Thanks Received:
    147
    Trophy Points:
    83
    Ratings:
    +170
    This is why GM, Chrysler, and Ford, Shearson Lehman Brothers , and Bear Sterns ,Citicorp
    are all asking the Federal goverment for help.? These same overpaid, overcompensated CEO's, have mismangaged many American Corporations into insolvency and bankruptcy,
    and now they want the American taxpayers to finance their over compensated mismanagement?!Please, I say the Federal government tell many of these CEO, that they all must be replaced , and their replacements paid at a dramatically reduced salary.
     
    Last edited: Dec 13, 2008

Share This Page

Search tags for this page

problem of excessive payment to CEO