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And the board often delegates compensation decisions to a third party. Said third party is incentivized to rationalize a higher compensation for the executive c
by moistly 4y ago
And the board often delegates compensation decisions to a third party. Said third party is incentivized to rationalize a higher compensation for the executive class, because that best ensures that they’ll be hired to do so again in the future.
- formerkrogemp 4y agoAnd the auditors are paid by the company that they audit.. For risk of material misstatement, not fraud. A fraudulent company can still pay an auditor a significant sum, and the auditor won't look for fraud, only material misstatement. It's the "audit expectations gap."
- Gibbon1 4y agoYeah friend worked for an executive compensation firm for a while. It was all about justifying increasing the CEO's compensation to match what other companies were paying. There is also the problem of the incestuous you scratch my back I scratch yours nature of board membership.
- chii 4y ago> justifying increasing the CEO's compensation to match what other companies were paying. which is what market rate means right? If a good CEO is poached to a competitor, the company will lose out.