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Executive pay does not follow the product's success. It follows the broader market for executives. If it followed the product's success, products that are goin
by addicted 5y ago
Executive pay does not follow the product's success. It follows the broader market for executives.
If it followed the product's success, products that are going through a bad patch, or are going downwards, would not be able to attract good executives, when arguably they are the ones who need the best executives, relative to products that are doing well, which on many occasions can sustain themselves purely on momentum.
This is further complicated for non profits which cannot use ownership stakes as an incentive either.
- chrisseaton 5y agoSo why do executives bother doing anything if they get paid no matter if they succeed or not?
- GreenWatermelon 5y agoIf the executives are bad they will be removed, and their reputation will suffer.
- beebeepka 5y agoDoes that happen, though? We've been hearing about golden parachutes for a while but are there cases supporting the logic that you just laid out?
- mmastrac 5y agoIn fairness, some executives are there just to fill a seat and not rock the boat when a company needs a face.