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A high profile "failure" like this also means she won't be able to get a job for awhile so you're compensating her for that. Ok, but when is that compensation
by evilduck 10y ago
A high profile "failure" like this also means she won't be able to get a job for awhile so you're compensating her for that.
Ok, but when is that compensation enough? At 10x your lifetime spending needs, or 20x? She just got paid enough for generations of her descendants to be on easy street for life. It's absurd.
Edit: I'm not angry at Mayer at all, I just don't understand why companies agree to golden parachute deals like this for failure. She took a career-ending risk, that's worth some compensation, but the scale seems disproportionate.
- coldtea 10y ago>I'm not angry at Mayer at all, I just don't understand why companies agree to golden parachute deals like this for failure. Because "the company" that decides is the board -- and these people rub each other's backs...
- mcbruiser3 10y agoThat, and also probably because otherwise CEOs would take ZERO risks. Not sure if that's a good thing or a bad thing.
- coldtea 10y agoIf a CEO doesn't have any negative sequences from their decisions, then any "risky" decisions they take for the company are not actual risks for them either.
- evilduck 10y agoIn the cases where the golden parachutes are absurdly large, I don't really see how they're really incentivized to take risks either. Perform or don't perform, the difference is the CEO's yacht size, or how many mansions they own around the globe?
- 1024core 10y agoI wish this was researched more. The same group of interconnected people serve on board or C-levels of companies. They happily give raises and generous offers to others, because they know that when their turn comes, the others will do the same to them. Meanwhile, small-time shareholders are powerless, because a large chunk of the shares are held by institutions who don't want to rock the boat, and are just happy that things are fine the way they are.
- rmchugh 10y agoSociology of elites looks at this kind of thing. One fairly easy thing to do is to do a network analysis of board membership. The ones I've seen tend to describe what you already know anecdotally, a small group of elites controlling a large number of central companies.
- xor1 10y agoI'm constantly amazed by how many people either don't understand this or simply refuse to acknowledge it.