Throw the CEO a bone ...
CEO pay has often been the topic of heated discussion on TV shows, magazines, newspapers and at coffee shops - Especially recently, with the scandals at Enron and Disney.
I personally believe that CEOs deserve every penny that they make - In salary, stock and everything that is linked to company performance. I do not think they should get the bloated severance pays that has become the norm recently. CEOs that were kicked out for non-performance ended up walking out with Millions of dollars. The Merck dude, the HP dudette, the Disney dude et al.
A great CEO is a sight to behold.
An inspiration, the person who never tires, the person who sets the direction and strategic vision for an ENTIRE company. I find that amazing !
Once when Lee Ioacocca, then CEO of Chrysler was asked why he was paid so much, he had a phenomenal answer - "How do you define my salary as being too big ? Especially when the owner of a large Chrysler dealership makes more money than me !"
Isnt that true ?!
I know of petrol pump owners who are richer than Indian Oil's chairman, personally.
Of course, the entrepreneurs have much more at stake, after all, its their own money they have invested in their company.
On the other hand, the pressures on a CEO, especially with the retarded Sarbanes Oxley act are immense as well.
So, heres to more performance linked pay schedules and less out of the world severance packages ....
I personally believe that CEOs deserve every penny that they make - In salary, stock and everything that is linked to company performance. I do not think they should get the bloated severance pays that has become the norm recently. CEOs that were kicked out for non-performance ended up walking out with Millions of dollars. The Merck dude, the HP dudette, the Disney dude et al.
A great CEO is a sight to behold.
An inspiration, the person who never tires, the person who sets the direction and strategic vision for an ENTIRE company. I find that amazing !
Once when Lee Ioacocca, then CEO of Chrysler was asked why he was paid so much, he had a phenomenal answer - "How do you define my salary as being too big ? Especially when the owner of a large Chrysler dealership makes more money than me !"
Isnt that true ?!
I know of petrol pump owners who are richer than Indian Oil's chairman, personally.
Of course, the entrepreneurs have much more at stake, after all, its their own money they have invested in their company.
On the other hand, the pressures on a CEO, especially with the retarded Sarbanes Oxley act are immense as well.
So, heres to more performance linked pay schedules and less out of the world severance packages ....
Comments
For example, getting a really well qualified person to be CEO of US Air today would be quite difficult as they could go to American Airlines and make the same money with a lot less risk.
With severance pay, they are sort of guaranteed that even if they cant turn the company around (which might have been an impossible task to begin with), they would walk away with a lot of money.
However, things started going badly when every CEO started demanding huge packages !