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> Isn't the obvious answer that CEO/executive pay should be tied more closely to performance? Short term or long term? How do you measure performance in a way
by karlkatzke 6y ago
> Isn't the obvious answer that CEO/executive pay should be tied more closely to performance?
Short term or long term? How do you measure performance in a way that can't be gamed? How do you prevent alignment of the company to achieve the metrics you set at the expense of all of the other things that make a thriving corporation?
- hayd 6y agoOh no, you've gamed the system to maximize your compensation and the long-term success of the company. Sure setting good metrics is hard, but that doesn't mean you should not set and publish metrics. What seemed to have happened is that pay was simply increased without strings. There are a bunch of cultural outcomes then across the company when you have this kind of absurdity. (A previous company I worked for the CEO had a multi-million dollar loan for his family-home/mansion written off by the company/board... the company was losing money.)