Last year the avarage profits of S&P 500 Corps went DOWN 35 %.
The avarage (by median) $PAY$ of CEO's went $UP$ 7%.
Quote:
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"A financial genius is a rising stock market"--John K. Galbraith
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Wow ! These must have been financial geniusus in a falling market !
You can bet your bottom dollar your Co. treats your compensation like any other other commidity--the best for the least $.
Why doesn't capitalism apply to CEO's and other high Execs--like the Men's Club at one Cell Phone Co.?
Today in NYC the CEO of TYCO (?) was indicted in Manhattan foe tax evasion of about one million dollars.
The Co.is in the toilet--yet he and his Partner reputedly took out a half $billion$ from the Co. in that last five years.
The practice of "bonusing" Execs based on stock market prices only encourages inflating profits NOW and delaying charges LATER.
Anybody say Enron ?
Why give an Exec a bonus for a 4 % rise in stock prices when benchmark went up 7% ? Why not index bonus against a benchmark?
BETTER yet .
Why not do with Execs what execs do with workers: Pay them the absolute least they would work for. If somebody won't run a Co. for a lousy 2 $ million a year--find somebody who will.
Remember the severance package Disney paid to a fired Exec: something like 100 $million ?
(The owner of the last place Pittsburg Pirate was asked how he could trade away a great player. His response: "If I could finish in last place with him, I can finish in last place without him.)
Let capitalism rule in the Executive Suite !
Pay Execs the least you can get away with.
I am sure that is not twenty million dollars a year. With a fifty mil$bonus/stockoptions.
And what kind of work ethic do they have if they need a "bonus" to perform?
MegalosSkylaki
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