3 ms·
> If you got fired from a job that had a potential $500M payday attached to it and only got a $25M severance package at the end of it, trust me, you'd be pretty
by pg314 9y ago
> If you got fired from a job that had a potential $500M payday attached to it and only got a $25M severance package at the end of it, trust me, you'd be pretty bummed about it.
Trust me, I wouldn't be. I pity the person who is bummed to have only $25M.
> He negotiated a package and he delivered results. His interests as a CEO are aligned with the shareholders who risk their capital with ownership of the company. They trust the board and the CEO to increase the value of their investment.
Ever tried getting a CEO's compensation reduced as a shareholder? Warren Buffett describes it as follows: "the deck is stacked against investors when it comes to the CEO’s pay" [1].
[1] http://www.berkshirehathaway.com/letters/2005ltr.pdf http://www.berkshirehathaway.com/letters/2005ltr.pdf
- jimbokun 9y agoThat is outstanding reading. Like the closing quote of that section: "Though I have served as a director of twenty public companies, only one CEO has put me on his comp committee. Hmmmm . . ." Everyone in this thread claiming CEOs usually "earn" their compensation needs to read this and explain why Buffet's arguments are wrong. (Not because it's Buffett, because his arguments are well thought out and reflect a lot of personal experience with the topic.)