Are CEO's paid what they are worth?

I mean yes I've read that they usually get paid mostly with stocks, so better performance = better pay, and if they were recruited from an outside company they tend to have little influence over its board to get higher compensation. But even though they will get fired if they do a bad job, they still get a huge severance. What do you guys think? Or do you have any examples of CEO's that are good or bad?

At one time yes. This is a situation that has gotten out of control. Companies are cutting wages on guys barely making enough to support a family "to keep the business afloat" and at the same time, the CEOs of these companies are making 200-300% wage increases each year. I understand 1-2 million/year is hard to live on but when you're taking 2 million away from the bottom rung and then handing it over to a handful of people so they can make an extra couple million, it makes me sick.

Assuming the employment agreement was voluntary, they get paid what they're worth by definition. The fact that YOU might make a different decision is irrelevant.

Most CEOs I have ever met weren't worth what they were being paid. I worked for a company for 16 years. The CEO was one floor up, and I saw this guy in person one time. What is he doing? Taking extended vacations?

I believe many are over paid. When they are getting between 10 and 20 million dollars a year it's not like they have to live paycheck to paycheck. And some companies that say they bought back billions of dollars of stock, to save dividend payments. ok
But it seems odd that when these buy backs were being made, the stock price nearly doubles, this way the big board stock owners get paid huge checks amongst them.
After spreading the wealth amongst the top.

The stock price goes back down to half and the employees lose $20,000 to $40,000 in their investments.But are told just relax your still employed for now.

Yes they should have a fair salary to run a big corporation
but 10 million a year seems a bit extreme, if they work 8 to 10 hours a day like the rest of us and spend a regular amount on biils and extras, seems they could still live well on even a million or two. Each year they cannot spend all that money it becomes surplus in their accounts.

Money that could be invested in more competitive infrastructure, more newer advanced equipment to provide services customers demand. Some larger companies are taken over by smaller operations because the competition provides a service the customers want, they invest more into the required infrastructure, and take over.

And the corporation loses the customer base and funding it had and cannot overtake it's losses and sells out.

They demand the employees give them 150% to beat the competition, on about 70% of the manpower, and structure. The difference is kept for the top management.

Yes many of the employees get paid well, and above average in many areas. I would not complain nor do I want to be paid millions, just that it seems that much of this money could be better invested in more employees, more updated equipment, lower prices, and circulated through the economy.

CEO's like steve jobs and richard branson are actively involved and their presence carries a certain goodwill value for the company. Paying them the hefty bonuses and salaries are justified, however there are a lot of CEO's that are in that position only because they are either married to the chairman's daughter or they are vetrans in company politics, people who don't deserve or don't actively participate in their company's wellbeing are overpaid.

one thing to keep in mind is that the highly paid CEOs are usually old farts who spent decades reaching that position.

They were not millionaires when they were in their 20s, 30s, 40s, or even 50s much of the time.
They usually work up the ladder very slowly, and are not at the top until they are old , wrinkled, decrepid farts who are too old to enjoy all that money.

The exceptions of course are CEOs who actually founded the company, such as Bill Gates, or michael Dell, or the leaders of Yahoo and Google. But most CEOs are leaders of old companies that have been around for 50 or 100 or 150 years.
They started off as a low level manager and sucked-asss their way to the top.

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.044
Copyright (c) 2011 Financial Crisis Sunday, May 27, 2012 - Terms of use - Privacy Policy