The issue with C suite pay is that the cost/benefit is not in line with the pay scale. There are legions of examples of highly paid execs making terrible business decisions. Sometimes, these are punished by the market, sometimes not. Sometimes businesses have such a strong position that even terrible mistakes can't hurt much.
Michael - I am general sympathetic to your argument. I think many Sr. Executives are compensated appropriately. I think in general there is a lack of leadership and vision. The good ones are really valuable. I think two things should happen here: 1 - Compensation based on EVA (Economic Value Add) should be adopted by all 2 - Fiduciary Duty lawsuits ought to be easier to wage.
The issue with C suite pay is that the cost/benefit is not in line with the pay scale. There are legions of examples of highly paid execs making terrible business decisions. Sometimes, these are punished by the market, sometimes not. Sometimes businesses have such a strong position that even terrible mistakes can't hurt much.
Michael - I am general sympathetic to your argument. I think many Sr. Executives are compensated appropriately. I think in general there is a lack of leadership and vision. The good ones are really valuable. I think two things should happen here: 1 - Compensation based on EVA (Economic Value Add) should be adopted by all 2 - Fiduciary Duty lawsuits ought to be easier to wage.