Quick question

[Stoner]

How bad do you want to beat the crap out of this shmuck?

http://money.cnn.com/2007/04/05/news/companies/ford_execpay/index.htm?section=money_latest

[AlonzoMourning23]

Why do you hate capitalism so much? Go back to Russia you commie bastard!

Or I could just say this is what happens in capitalist societies.

[Labrocca]

I just think that corporations often are irresponsible with other peoples money.Â*Â*This is a PUBLIC company and it doesn't seem fitting the pay packages of some of America's CEO.Â*Â*Comparing the international pay packages of CEOs vs American CEOs you will see a VAST difference.Â*Â*As you can see in this instance the company LOST money and yet the CEO got bonuses?Â*Â*In what world do we live in?


I am a huge fan of Warren Buffet (http://en.wikipedia.org/wiki/Warren_Buffett).Â*Â*He is a man that shows fiscal responsibility for the money he manages which is OTHER PEOPLE's MONEY!Â*Â*

This CEO (from the article) is a disgrace.

[jafar00]

Wow, if thats what they pay for 4 months of cluelessness, I'm off to apply for a job as CEO ;)

[Professor]

Wow, if thats what they pay for 4 months of cluelessness, I'm off to apply for a job as CEO ;)


I know!

Abroad a CEO makes 14 times what the low people make. Here I think it is 45.

[firefox]

Depends on which country you're talking about. Also, your average large American firm is doing a lot better than counterparts in most parts of the world. Everything must be in context.

[Buck Laser]

Wow, if thats what they pay for 4 months of cluelessness, I'm off to apply for a job as CEO ;)


I know!

Abroad a CEO makes 14 times what the low people make. Here I think it is 45.


I think you're off by a factor of ten, Professor--it's more like 450 times as much as an entry level employee.

[Leopardpm]

so what? I mean, what does it matter to any of you what another person is being paid? Are you paying them? no - if you are and you have a problem with the amount then stop paying them! Someone, somewhere obviously thinks that this person does a job which is worth that amount. If I choose to pay my lawn mower boy $1 million dollars, are you going to whine about that? Each and every one of us could apply for that job - why do you think that none of us will receive it? It's not because he has the 'looks', I am much more handsome than he. It's because he does things and sees things in a way that very few people can, and the way he does what he does is very valuable.

[tomanyhumans]

Not as bad as I'd like to kick yours. tool.

[Truth_and_Power]

so what?Â*Â*I mean, what does it matter to any of you what another person is being paid?Â*Â*Are you paying them? no - if you are and you have a problem with the amount then stop paying them!Â*Â*Someone, somewhere obviously thinks that this person does a job which is worth that amount.Â*Â*If I choose to pay my lawn mower boy $1 million dollars, are you going to whine about that?Â*Â*Each and every one of us could apply for that job - why do you think that none of us will receive it?Â*Â*It's not because he has the 'looks', I am much more handsome than he.Â*Â*It's because he does things and sees things in a way that very few people can, and the way he does what he does is very valuable.


This assumes that the board of directors is interested in the success of the company above all other concerns.

[Leopardpm]

The board of directors is interested in their own success, which will be diminished if they pay a CEO more than he can bring wealth to the company in some form or another.

[Truth_and_Power]

The board of directors is interested in their own success, which will be diminished if they pay a CEO more than he can bring wealth to the company in some form or another.


Unless they hope to be a CEO themselves someday.

[Leopardpm]

...yes, all a very fine tale... except that stockholders vote the Board of Directors, they don't elect themselves...

[Truth_and_Power]

...yes, all a very fine tale... except that stockholders vote the Board of Directors, they don't elect themselves...


The CEO & a consulting company are involved in setting the BoD's pay, not the shareholders. The total pay of a CEO is very small in relation to the performance of the company, therefore the BoD may easily be influenced by other factors such as empathy with the CEO rather than the shareholders.

I thought this was a good article, let me know what you think:
http://www.law.harvard.edu/programs/olin_center/corporate_governance/MediaMentions/NYT_1-22-06.pdf