3 ms·

Well, it would be nice if executive pay were tied to something. Studies show it certainly isn't correlated with financial performance: https://www.theguardian.

Well, it would be nice if executive pay were tied to something. Studies show it certainly isn't correlated with financial performance: https://www.theguardian.com/business/2016/dec/27/negligible-link-between-executive-pay-and-firms-performance-says-study https://www.theguardian.com/business/2016/dec/27/negligible-... The massive rise in executive pay over the past 30 years amounts pretty much to a giant consumer-funded welfare program for corporate management.

cabalamat 8y ago
> Well, it would be nice if executive pay were tied to something. Maybe it could be tied to user satisfaction? If it was, maybe they wouldn't have scrapped Google Reader.
- simonsarris 8y ago
  That would be a neat way to drive most companies into the ground.
stanfordkid 8y ago
Warren Buffett has the best thoughts on this. Highly recommend reading his essays. Companies should be run by boards with experience. These boards have a duty to understand the company holistically. Unfortunately diversity police and compensation consulting committees seem to be the future of executive pay -- what a sad state of affairs.
- vannevar 8y ago
  These boards have a duty to understand the company holistically. Agreed. This is a good argument for limiting participation on multiple boards. 'One director, one board' would encourage more board focus on the companies they direct, and also open up more board seats generally for greater diversity in corporate governance.
weberc2 8y ago
Inflated executive pay is a problem. Tieing executive pay to diversity goals is two problems. Diversity is great, but I get the feeling that most corporate diversity initiatives willfully or inadvertently combat heterdox perspectives. And the irony isn't lost on me that the principal stated benefit of race and gender diversity is that it proxies for viewpoint diversity. But this is just my opinion--I'm happy to entertain any data that confirms or refutes this sentiment.
elihu 8y ago
My cynical view is that executive stock is usually set at whatever level is necessary to signal to stockholders that the executive's own self-interest will place the interests of shareholders above the interests of employees, customers, or society in general.
- nathanaldensr 8y ago
  An excellent summary and, in my opinion, not cynical but realistic and likely.

cabalamat 8y ago

> Well, it would be nice if executive pay were tied to something. Maybe it could be tied to user satisfaction? If it was, maybe they wouldn't have scrapped Google Reader.

simonsarris 8y ago
That would be a neat way to drive most companies into the ground.

stanfordkid 8y ago

Warren Buffett has the best thoughts on this. Highly recommend reading his essays. Companies should be run by boards with experience. These boards have a duty to understand the company holistically. Unfortunately diversity police and compensation consulting committees seem to be the future of executive pay -- what a sad state of affairs.

vannevar 8y ago
These boards have a duty to understand the company holistically. Agreed. This is a good argument for limiting participation on multiple boards. 'One director, one board' would encourage more board focus on the companies they direct, and also open up more board seats generally for greater diversity in corporate governance.

weberc2 8y ago

Inflated executive pay is a problem. Tieing executive pay to diversity goals is two problems. Diversity is great, but I get the feeling that most corporate diversity initiatives willfully or inadvertently combat heterdox perspectives. And the irony isn't lost on me that the principal stated benefit of race and gender diversity is that it proxies for viewpoint diversity. But this is just my opinion--I'm happy to entertain any data that confirms or refutes this sentiment.

elihu 8y ago

My cynical view is that executive stock is usually set at whatever level is necessary to signal to stockholders that the executive's own self-interest will place the interests of shareholders above the interests of employees, customers, or society in general.

nathanaldensr 8y ago
An excellent summary and, in my opinion, not cynical but realistic and likely.