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He still gets a more than adequate salary for his work. Wait, are we talking about a real situation? Looks to me like you declared something about what is "ad

by crusso 14y ago

He still gets a more than adequate salary for his work. Wait, are we talking about a real situation? Looks to me like you declared something about what is "adequate salary" without knowing what that salary is, what the bonus model being speculated upon would be, or what the opportunity cost for that hypothetical CEO would be for taking on such a high-risk position. Upon what information do you base even having an opinion on what salary is adequate?

grey-area 14y ago
The example given by the OP was RIM (in a situation where they are losing money) - CEOs received $1.2 million each as a salary until recently, total compensation was $5.1 million in 2011. That seems more than adequate to me for a company bleeding revenue and market share. My point was that a bonus taken in lieu of salary is no longer a bonus but a wage, and extra rewards should be commensurate with the company's performance, not taken for granted for people at the top, who ultimately should take responsibility for the wellbeing of their company and employees. That means taking a cut in bonuses and perks when the company is doing badly, whether it is their fault or not, just as employees may lose their job, even if they do a good job but the company is struggling.
- crusso 14y ago
  And if you have a CEO running another company who is already making $5 million/year who has a great track record and could be the best bet for staunching the bleeding at RIM and maybe even turning it around. Why would that person take a risk of going to RIM? My point is that sideline "this is an adequate salary" ranks up there with saying, "that's an adequate temperature for boiling that liquid". Well what's the liquid? What's the ambient pressure?
  - grey-area 14y ago
    IMHO there is no correlation between high pay and competence, particularly at the top end of the scale.
    - crusso 14y ago
      These blanket statements you keep making remind me of this article: http://www.lifeslittlemysteries.com/2187-incompetent-people-ignorant.html http://www.lifeslittlemysteries.com/2187-incompetent-people-...

by crusso 14y ago

grey-area 14y ago

The example given by the OP was RIM (in a situation where they are losing money) - CEOs received $1.2 million each as a salary until recently, total compensation was $5.1 million in 2011. That seems more than adequate to me for a company bleeding revenue and market share. My point was that a bonus taken in lieu of salary is no longer a bonus but a wage, and extra rewards should be commensurate with the company's performance, not taken for granted for people at the top, who ultimately should take responsibility for the wellbeing of their company and employees. That means taking a cut in bonuses and perks when the company is doing badly, whether it is their fault or not, just as employees may lose their job, even if they do a good job but the company is struggling.

crusso 14y ago
And if you have a CEO running another company who is already making $5 million/year who has a great track record and could be the best bet for staunching the bleeding at RIM and maybe even turning it around. Why would that person take a risk of going to RIM? My point is that sideline "this is an adequate salary" ranks up there with saying, "that's an adequate temperature for boiling that liquid". Well what's the liquid? What's the ambient pressure?
- grey-area 14y ago
  IMHO there is no correlation between high pay and competence, particularly at the top end of the scale.
  - crusso 14y ago
    These blanket statements you keep making remind me of this article: http://www.lifeslittlemysteries.com/2187-incompetent-people-ignorant.html http://www.lifeslittlemysteries.com/2187-incompetent-people-...