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As determined by Boards filled with other CEOs. I'm pretty sure that SE salaries would be much higher if the only people allowed to determine their salaries we
by disgruntledphd2 2y ago
As determined by Boards filled with other CEOs.
I'm pretty sure that SE salaries would be much higher if the only people allowed to determine their salaries were their peers.
- robertlagrant 2y agoAre they filled with other CEOs? I thought boards were filled with different people concerned with different topics. Where do you see that they're filled with other CEOs?
- triceratops 2y agohttps://theyrule.net/ https://theyrule.net/ is a good visualizer of boards of public companies, and the titles of the directors.
- robertlagrant 2y agoJust as a quick first check, of the three most influential/connected directors listed on the front page: 2 are ex-CEOs, and the third is a mixture, including having been Obama's ambassador to the EU. How did you see how many are CEOs out of the total?
- disgruntledphd2 2y agoI just acquired this belief from throwaway comments in the FT over the years. I do know that generally boards are filled with CxO people, because they tend to have the right experience.
- triceratops 2y agoThe website doesn't have an overall table of stats. You yourself noted that 2/3 of the top 3 are ex-CEOs. They might have taken on those directorships when they were still CEOs. They might take on new CEO roles in the future. I think the overall point stands.
- robertlagrant 2y agoIt doesn't seem to - 2 of the top 3 people might be ex-CEOs, but that doesn't mean that all board members are CXOs. That's why I was asking how we see it for all board members, and not just the top 3.
- triceratops 2y ago> that doesn't mean that all board members are CXOs Yes even one contrary example would disprove this statement. I thought the original sentiment was boards are dominated by top executives in industry, and not that literally 100% of board members are currently a CEO. The former isn't obviously untrue to me, the latter is easily disproved. It isn't even necessarily wrong to have mostly CEOs or ex-CEOs on boards. You really do want experienced businesspeople as board members. But that conflict of interest or "class loyalty" should be kept in mind when discussing whether CEO pay is set by a competitive, open market.