5 ms·

I think the question is not if CEO is good, but if CEO is worth her/his salary.

by jkot 11y ago

vinceguidry 11y ago
Hmm, I would think salary would be one of the smaller considerations when choosing a CEO at that level. It's generally going to be a drop in the budget compared to annual revenue. A negotiation point for sure, but more of a side show to other concerns.
- sandworm101 11y ago
  158 million is never a drop in the bucket. Just because a company is worth billions doesn't mean they are willing to throw away millions. There are still lawyers out there looking to bring derivative actions.
- hkmurakami 11y ago
  Maybe if the company were profitable and minting tens of billions of dollars in revenue a year. But we're talking about $YHOO, which for years has had negative core enterprise value. In such a situation it's not really a drop in a bucket.
  - vinceguidry 11y ago
    Then it's even less important. When you need Superman to save the world, you don't quibble over his price. Okay, maybe a little, but everybody's a professional here.
- deleted 11y ago
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namelezz 11y ago
I wonder the same thing. Why do CEOs get paid too much?
- heurist 11y ago
  It was explained to me this way: in the US executive boards are unevenly weighted toward CO interests. In countries where wage experts and workers are more likely to sit on boards the ratio isn't absurd because boards are less likely to vote for higher executive wages (Japan and Europe have reasonable CEO wages).
  - spitfire 11y ago
    In Japan at least a large fraction of the compensation comes in non-monetary "perks". Ex: Company car, use of company plane, etc. Similar things happen in Europe. Though I'm sure it isn't as insane as it is in the US.
- pkaye 11y ago
  The corporate boards members tend to be CEOs of other companies so they have a tendency to give each other raises because it is in their best interest.
- jfoutz 11y ago
  In a global economy it's winner take all. .05% better might matter.
- endtime 11y ago
  No board wants to admit they have a below average CEO, so they all have to pay them above average, which of course raises the average.
  - eru 11y ago
    Coincidentally, CEO pay has really started exploding after publishing it became mandatory.
- TheLogothete 11y ago

I think the question is not if CEO is good, but if CEO is worth her/his salary.

by jkot 11y ago

I think the question is not if CEO is good, but if CEO is worth her/his salary.

Hmm, I would think salary would be one of the smaller considerations when choosing a CEO at that level. It's generally going to be a drop in the budget compared to annual revenue. A negotiation point for sure, but more of a side show to other concerns.

sandworm101 11y ago
158 million is never a drop in the bucket. Just because a company is worth billions doesn't mean they are willing to throw away millions. There are still lawyers out there looking to bring derivative actions.
hkmurakami 11y ago
Maybe if the company were profitable and minting tens of billions of dollars in revenue a year. But we're talking about $YHOO, which for years has had negative core enterprise value. In such a situation it's not really a drop in a bucket.
- vinceguidry 11y ago
  Then it's even less important. When you need Superman to save the world, you don't quibble over his price. Okay, maybe a little, but everybody's a professional here.
deleted 11y ago
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namelezz 11y ago

I wonder the same thing. Why do CEOs get paid too much?

heurist 11y ago
It was explained to me this way: in the US executive boards are unevenly weighted toward CO interests. In countries where wage experts and workers are more likely to sit on boards the ratio isn't absurd because boards are less likely to vote for higher executive wages (Japan and Europe have reasonable CEO wages).
- spitfire 11y ago
  In Japan at least a large fraction of the compensation comes in non-monetary "perks". Ex: Company car, use of company plane, etc. Similar things happen in Europe. Though I'm sure it isn't as insane as it is in the US.
pkaye 11y ago
The corporate boards members tend to be CEOs of other companies so they have a tendency to give each other raises because it is in their best interest.
jfoutz 11y ago
In a global economy it's winner take all. .05% better might matter.
endtime 11y ago
No board wants to admit they have a below average CEO, so they all have to pay them above average, which of course raises the average.
- eru 11y ago
  Coincidentally, CEO pay has really started exploding after publishing it became mandatory.
TheLogothete 11y ago