Do CEO's deserve their huge Paychecks?

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No most usually not. I like the 10X rule, the CEO makes no more than 10X the lowest employee. If the line-level employees aren't worth much or can't be afforded much compensation, then neither is the CEO.
 
I had read before that the ratio used to be 30 to 1. Now it is more like 300 to 1.

They get paid to make money (usually I think) If this means canning people and paying them little so be it.
 
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I like this quote from Paywatch.

Are these CEOs being paid to expand their companies, grow the real economy and create good-paying jobs? Apparently not. According to the Federal Reserve, U.S. corporations held a record $1.93 trillion in cash on their balance sheets. A lack of business investment is one reason that more than 14 million Americans remain unemployed.
 
It depends on the CEO. Some turned a dying company around and others drive a company into the ground. What I can say is that their pay is not directly proportional to their performance and contribution, but rather their luck and reputation at the time of hiring / contract signing.

Steve Job, Alan Mulally, yes.

Carly Fiorina, Philip Schoonover, heck no.
 
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I guess you guys get to decide now what is "fair"?

I thought we still lived in a free country?
 
So, the original post here gets to stay, but other posts and topics that are much less political get deleted and their posters scolded in private messages for discussing political topics?
 
Originally Posted By: Tim
I guess you guys get to decide now what is "fair"?

I thought we still lived in a free country?


Tim,

You raise a good point, and one that would be valid were the game not rigged.
The average corporate CEO is the darling of the board that selects him, and can do no wrong, until the wrong becomes too obvious to ignore.
The game is rigged, and it isn't rigged to pay personnel at the higher levels based upon their measured performance.
The business world is replete with examples of lackluster performers moving on from one gig where the game is up to another at absurd compensation levels.
This probably needs to be cured with legislation applied to the permissable pay multiples for board appointed officers of publicly held companies.
 
I don't worry about what others make, many make more that I do. I'm not a ceo, but who am i to say what others should earn? I take care of myself and I don't fuss and worry about who got more ice cream than i did. I never use the words " Its not fair".
 
Originally Posted By: mechanicx
No most usually not. I like the 10X rule, the CEO makes no more than 10X the lowest employee. If the line-level employees aren't worth much or can't be afforded much compensation, then neither is the CEO.


This is what they do in Japan, and I think it works for them.

My favorite story is how Bob Nardelli ran Home Depot into the ground, then they paid him 210 Million to go away.

http://www.msnbc.msn.com/id/16469224/ns/business-bloomberg_businessweek/

He then went to Chrysler as CEO. And now you know the rest of the story...
 
It cracks me up that people get angry about others paychecks. It boggles my mind that they think the government will solve the issue. Yeah - the government knows money
lol.gif
crackmeup2.gif
 
I don't know Spasm....is your job worth 818 times less then this guy?

http://www.aflcio.org/corporatewatch/paywatch/ceou/database.cfm?tkr=XOM&pg=1

I don't think so.

Many of these guys make lots of money but are they making the country better? Are they making jobs?

I don't really have a problem with someone who starts a company and works building it up and is compensated well for doing so. But many of these are plainly outrageous.

Why isn't the doctor who saved your life with open heart surgery not worth 818 times average. How about the policeman that saves your life in a bank robbery?
 
I don't care what he makes, or makes in relation to me. If the company is willing to pay him and finds him worth it , then go for it. There is some notion that people are poor because others are wealthy , a lot of middle eastern terrorists think this way.
 
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Originally Posted By: Bluestream
Originally Posted By: mechanicx
No most usually not. I like the 10X rule, the CEO makes no more than 10X the lowest employee. If the line-level employees aren't worth much or can't be afforded much compensation, then neither is the CEO.


This is what they do in Japan, and I think it works for them.

My favorite story is how Bob Nardelli ran Home Depot into the ground, then they paid him 210 Million to go away.

http://www.msnbc.msn.com/id/16469224/ns/business-bloomberg_businessweek/

He then went to Chrysler as CEO. And now you know the rest of the story...


Wow that dude is greedy.....I have no respect for that egomaniac.
 
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