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I totally agree with the thought that rewards go up and so should blame. The reason they get those rewards in the first place is due to some theory that their d
by talmand 13y ago
I totally agree with the thought that rewards go up and so should blame. The reason they get those rewards in the first place is due to some theory that their decisions and actions carry so much weight and responsibility. Why is that this weight and responsibility is factored only in rewards and not blame?
But your argument about executive compensation is rather odd to me. Not every employee enjoy the benefits of the company's success unless you just consider having a job the only benefit to worry over. Since the employees take home pay is collectively larger then the executive pay seems reasonable? I strongly disagree. That's implying that the executive can pay himself a million a year and there's no problem with paying 100,000 employees $100 a year because collectively they get paid more. I think the executive would likely feel that's a great deal for him but I would think the employees would disagree. Granted, extreme example. The simple fact is that in most companies I would expect the collective pay of employees to be larger than the pay of its executives, that shouldn't be a factor at all.
I'm not aware of examples shareholders being involved in the day-to-day decisions that the executive makes. Sure, there's pressure to do this or that, but shareholders tend to just say "make us money". They don't necessarily so how it should be done. That doesn't excuse the executive's decision if it goes bad.
As for "foolish" laws that could imprison CEOs for bad decisions. We actually already have such laws on the books, they just aren't enforced on that level. If you as a person make a bad decision that results in harm to someone else, those laws may hold you accountable. In terms of CEOs making the same exact decision that results in the exact same harm to someone else tends to result in the company being held responsible. Which usually results in a fine of some sort, if anything at all. In most cases where the company causes harm, it was a person's decision that led to that harm. If it can determined that it was the person's decision that led to that harm, you're damn right they should face the consequences of that decision.
Big example. Deepwater Horizon oil spill, several individuals faced criminal charges for decisions made before and after the accident and rightfully so. Why is it a CEO shouldn't face consequences for decisions that they make if it can be shown they were in fact the ones that made them?