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Do not have mercy for a faceless corporation continually posting profits that grow quarter over quarter. They are rolling in money and could cut executive comp

Do not have mercy for a faceless corporation continually posting profits that grow quarter over quarter. They are rolling in money and could cut executive comp or something else, but choose not to.

nickpp 3y ago
Executives lost to competition due to cut comp are much harder to replace than regular workers. Sucks, but it’s the reality.
- oh_sigh 3y ago
  If, say, Sundar was only offered a $100M package instead of a $226M package, where would he go that would pay him more than $100M? There's no other person out there who would do the job for $100M? An issue would be that Sundar is plugged into Google and knows all the ins and outs and has the relationships that an outsider would take some time to learn/form, but on the same hand, Sundar going out into the wide world is then lacking those same things at his new company, meaning new companies might be as hesitant to hire him as Google would be to hire a new outsider CEO.
  - sokoloff 3y ago
    > There's no other person out there who would do the job for $100M? I'd be willing to do a terrible job at it for only $10M/yr. That's not what the shareholders want; they want Sundar to keep doing what is, from the shareholders' point of view, a quite respectable job, seeing the shares grow from $34 when he become CEO to $112 now for a CAGR of around 17%.
    - oh_sigh 3y ago
      Sure, I don't mean anyone willing to take the job, I mean anyone the board might reasonably select who has a good chance of success. Surely those people are out there. In that same time frame that Sundar was CEO and GOOG stock is up 240%, META is up 160%, NFLX is up 220%, AMZN is up 325%, AAPL is up 500%, and MSFT is up 600%. Surely these giant tech companies didn't all get lucky and get the only 5 people who could get great growth numbers from the stock market.
      - sokoloff 3y ago
        Shareholders want to avoid CEOs who will give them the returns of IBM, Cisco, VMWare, HP, or Groupon. It's not about the idea that only these specific 5 people could have generated those returns. But when they are generating those returns, there's ample support from the board and shareholders to pay them handsomely to generate returns like the list of companies you gave and not the list that I gave here.
        listenallyall 3y ago
        A zero-raise policy, if its reasonably long-term, is likely to leave you stuck with the type of employees at IBM and the others. Maybe not the CEO but the rest.

Do not have mercy for a faceless corporation continually posting profits that grow quarter over quarter. They are rolling in money and could cut executive comp or something else, but choose not to.

nickpp 3y ago

Executives lost to competition due to cut comp are much harder to replace than regular workers. Sucks, but it’s the reality.

oh_sigh 3y ago
If, say, Sundar was only offered a $100M package instead of a $226M package, where would he go that would pay him more than $100M? There's no other person out there who would do the job for $100M? An issue would be that Sundar is plugged into Google and knows all the ins and outs and has the relationships that an outsider would take some time to learn/form, but on the same hand, Sundar going out into the wide world is then lacking those same things at his new company, meaning new companies might be as hesitant to hire him as Google would be to hire a new outsider CEO.
- sokoloff 3y ago
  > There's no other person out there who would do the job for $100M? I'd be willing to do a terrible job at it for only $10M/yr. That's not what the shareholders want; they want Sundar to keep doing what is, from the shareholders' point of view, a quite respectable job, seeing the shares grow from $34 when he become CEO to $112 now for a CAGR of around 17%.
  - oh_sigh 3y ago
    Sure, I don't mean anyone willing to take the job, I mean anyone the board might reasonably select who has a good chance of success. Surely those people are out there. In that same time frame that Sundar was CEO and GOOG stock is up 240%, META is up 160%, NFLX is up 220%, AMZN is up 325%, AAPL is up 500%, and MSFT is up 600%. Surely these giant tech companies didn't all get lucky and get the only 5 people who could get great growth numbers from the stock market.
    - sokoloff 3y ago
      Shareholders want to avoid CEOs who will give them the returns of IBM, Cisco, VMWare, HP, or Groupon. It's not about the idea that only these specific 5 people could have generated those returns. But when they are generating those returns, there's ample support from the board and shareholders to pay them handsomely to generate returns like the list of companies you gave and not the list that I gave here.
      - listenallyall 3y ago
        A zero-raise policy, if its reasonably long-term, is likely to leave you stuck with the type of employees at IBM and the others. Maybe not the CEO but the rest.