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If they get sued then potentially yes. Think about Fred Goodwin, ex leader at RBS. https://en.wikipedia.org/wiki/Fred_Goodwin https://en.wikipedia.org/wiki/Fred
by egwor 10y ago
If they get sued then potentially yes. Think about Fred Goodwin, ex leader at RBS. https://en.wikipedia.org/wiki/Fred_Goodwin https://en.wikipedia.org/wiki/Fred_Goodwin
I think there are legal cases coming against him that would need to be paid for, and it is questionable who pays those fees.
- TheOtherHobbes 10y agoFred Goodwin didn't fall on hard times. He seems to have been directly responsible for some very questionable dealings. But the bottom line problem with CEO pay is that you get a huge pay packet just for getting out of bed, no matter how badly you do; pay is completely decoupled from performance. When Leo Apotheker was at HP for just under a year he received $13m in comp, severance of $7.2m, shares worth $3.56m, and a performance bonus of $2.4m - all while losing $30bn in value. Developers like to speculate about 10X programmers. But ahere's no industry acknowledgement at all that the 0.001X CEO or manager is a real phenomenon. Anyone working at that level seems to be completely protected from business consequences.
- takno 10y agoIn what sense is it questionable who pays the fees? That is exactly what directors insurance is for
- egwor 10y agoI'm not sure how it works; does that insurance still cover you after the event? And if you have made a stupid mistake(not defending or even giving a view about Fred here) you are personally liable, aren't you?