Why do American CEOs make twice as much as German CEOs?

[Brain357]

American CEOs make as much as they do because they can.

Boards of Directors have no balls.

Boards are loaded with other CEOs who also want raises.

 

[Bootney Lee Farnsworth]

Boards are loaded with other CEOs who also want raises.

And how do those other CEOs get on the Board of Directors?

Hint: It's in your article.

.

 

[Bootney Lee Farnsworth]

So, how does one get a seat on a Board of Directors? What is required? What are the qualifications?

How to Become a Corporate Board Member

"Post Sarbanes-Oxley, a 2002 law imposing stringent new corporate requirements, board membership has become a tightly regulated, formal affair. Searches are often handled by professional search firms and, says Eisenman, 'the definition of qualified has significantly been altered. There are very clear regulations for independent directors in terms of the credentials necessary to be a financial expert or compensation expert. You need to demonstrate proof in past experiences, degrees, focus, and the skill sets board members bring.'"

 

[Bootney Lee Farnsworth]

So, what you have is a group of owners willing to pay lots of money to experts to spend nearly every minute of their waking life to make decisions on behalf of the company.

And, then, you have people WHOLLY UNCONNECTED to said company bitching about how much those decision-making experts are paid.

Who is not bitching?

Most shareholders.

So....why are people bitching about it?

Because it's another excuse to remove free-enterprise and become buttfucking commies.

.

 

[Brain357]

So, what you have is a group of owners willing to pay lots of money to experts to spend nearly every minute of their waking life to make decisions on behalf of the company.

And, then, you have people WHOLLY UNCONNECTED to said company bitching about how much those decision-making experts are paid.

Who is not bitching?

Most shareholders.

So....why are people bitching about it?

Because it's another excuse to remove free-enterprise and become buttfucking commies.

.

What we have are CEOs giving themselves lots of raises. The board is loaded with other CEOs who want a raise. Performance is not tied to pay. What we have is a rigged scam.

 

[Brain357]

Why CEOs Make So Much Money
Reason 3 - It's A "King's Court"

Today's large corporations hire consultants to evaluate CEO performance, and design "pay for performance" compensation packages. These are then reviewed by external lawyers for their legality. And by investment bankers for their acceptability to investors. These outside parties render opinions as to the CEO's performance, and pay package, and overall pay given.

Unfortunately, these folks are hired by the CEO and his board to render these opinions. Meaning, the person they judge is the one who pays them. Not the employees, not a company union, not an investor group and not government regulators. They are hired and paid by the people they are judging.

Thus, this becomes something akin to an old fashioned king's court. Who is in the boardroom that gains if they object to the CEO pay package? If the CEO selects the board (and they do, because investors, employees and regulators certainly don't) and then they collectively hire an outside expert, does anyone in the room want that expert to say the CEO is overpaid?

If they say the CEO is overpaid, how do they benefit? Can you think of even one way? However, if they do take this action - say out of conscious, morality, historical comparisons or just obstreperousness - they risk being asked to not do future evaluations. And, even worse, such an opinion by these experts places their clients (the CEO and board) at risk of shareholder lawsuits for not fulfilling their fiduciary responsibility. That's what one would call a "lose/lose.