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The board and shareholders are not made of CEOs. They are compensating the CEO highly because it’s giving them stock returns. If that correlation doesn’t exist
by kortilla 1y ago
The board and shareholders are not made of CEOs. They are compensating the CEO highly because it’s giving them stock returns.
If that correlation doesn’t exist, then investors should be able to easily drive CEO comp way down.
- triceratops 1y agoThe boards of most public companies are made up mostly of C-level executives of other public companies. Retail shareholders hardly ever get involved to a sufficient degree to fire boards.
- eru 1y agoWhy would retail shareholders need to get involved? That's what we have eg corporate raiders for.