Posted on 12/01/2007 3:39:26 PM PST by Clintonfatigued
In the business world you could flip that around, for it seems that most unhappy companies resemble one another: According to mail from more than a thousand readers of this column on the subject of the nations worst chief executives, a great number of dysfunctional companies are run by tyrants who gouge gross compensation packages for themselves and their cronies out of the hides of their workers and customers.
What makes a worst CEO in the minds of so many investors and employees is not merely poor decision-making on the allocation of capital and other resources. Almost everyone can tolerate well-intentioned plans that go awry. Instead, it is the ugly way that CEOs have normalized the behavior of compensating themselves at increasingly more obscene levels -- often on the basis of self-set relative performance targets that fail to account for the absolute performance that matters most to all stakeholders: long-term corporate value as reflected in a higher stock price.
(Excerpt) Read more at moneycentral.msn.com ...
These people give free enterprise a bad name.
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Oh I don’t know.
Let the market punish them as they should be.
That’s free enterprise as well.
—it is unfortunate, indeed that stockholders can’t see to it that some of these corporate failures end up figuratively , at least, begging on a street corner-—
Good example of a Black Swan.
Yeah, they take a lot of risk. After all, if they are successful they get big bonuses but if they aren’t successful, they get big bonuses.
Such hard work and big risks they take.
Where’s the share holders?
They own the company.
Yes, the shareholders should do something. I just get sick of hearing the lie that CEO’s work hard and take big risks because they risk nothing. If they do good, they get a huge payday. If they screw up, they get a big payday.
The only risk is to the people who work for them.
Oh yeah, and the people who pay money for the junk they make.
So did you play the original Duke Nukem 3D game on a PC?
Many, many years ago I play through all the levels to the end... Can’t remember what happened at the end... Oh well...
I played the original Duke Nukum 2D side-scroller. When he was called Duke Nukum. The greatest video game hero, ever.
At the end of the 3D game Duke kicks a field goal.
So let the stockholders limit CEO pay. What concern is it of me?
To that I’ll just add: High pay is no guarantee you’ll get a good CEO. But low pay is a guarantee you’ll get a bad CEO.
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