The CEO Pay Gap Widens

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  1

  sbrennaman354

  06/02/08 | Report as spam

  CEO Pay Gaps

  First of all I am a capitalist and understand that I get what I negotiate going into a position. These CEO's are no different. So who do we yell at (even if we do not have a right to do so unless we are a shareholder)? The board of directors and the underlying compensation committee!! Also remember these ladies and gentleman (on hte board) have a vested interest in the company doing well since a good portion of their compensation comes in the form of stock grants and options. Having said all of this I admit to being shocked at some of the salaries and misc. compensation that some of these people are receiving (note I said receiving, not necessarily earning). However, if they perform to standard and meet the requirements they should receive what it is they contracted to receive. Those of us that have received stock options realize that these are truly performance related since they are set at a price that indicates the company has to do well (stock price and therefore benefiting shareholders - directors) in order for the CEO to benefit.
  
  Bottom-line: If the company does well (turnaround, profitability hits targets, etc) then the CEO should receive what she/he negotiated. If performance is lacking then they should be booted. Hey let?s look at severance packages for the losers. They should really burn you up.

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  netphd

  06/03/08 | Report as spam

  RE: The CEO Pay Gap Widens

  In business, in sports, and related occupations there seems to never be enough money for these individuals. How much is enough?? These exorbitant salaries appear to be a score card for these people. It is which CEO can make the most. These decisions are made by the Boards of the companies. They also have some blame for the high salaries. You would think they would want this money to go to the bottom line, which could help the deserving stock holders, employees and the overall economy. I can't believe these individuals have the company at heart when they except such huge amounts of money.

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  pgaluszka

  06/03/08 | Report as spam

  Why such big pay?

  Thanks to both commentators for interesting points. One reason for the exponential boost in pay over the past few years compared to the standard over decades has to do with changes in taxation. I will try to tease out a column later about this.
  
  Another reason, as the study states, is that big companies are short of women and men who have the depth of talent, brains and experience, to raise a crop of able successors. This has been a regular theme on BNet and is apparently correct.
  
  Peter Galuszka