Talking stocks, trading, and investing in general

[venividivicibj]

CEOs after getting golden parachute

 

[patrickBOOTH]

I'm sure that some CEOs are. And I don't claim to have a magic tool for measuring the value added by CEOs and compensating appropriately, but I also don't trust the too-cozy relationship that often exists between boards and CEOs.

Boards are nothing but Gentleman's Clubs.

 

[Texasmade]

The whole argument of we need to compensate talent or else they're going to walk out the door is total bullshit. A c level executive isn't going to walk out the door to another company because there aren't a lot of other c level positions open that will pay. Instead it's just a giant circle jerk to ensure they all get paid a **** ton by calling each other talented.

 

[Omega Male]

That is quite true in the US and easily demonstrated by comparisons to similar-sized enterprises in other developed markets.

It's not like the guy making $50 million wouldn't bother to get out of bed if could only get paid $25 million.

 

[venividivicibj]

Is there even any proven track record that CEOs being paid 25mm are worse than CEOs being paid 30mm?

 

[Omega Male]

There's research suggesting an inverse relationship between CEO pay and stock performance.

Does Higher CEO Pay Produce Better Company Performance?

CEO pay has risen tremendously over the past few decades with most chief executives at large public companies earning well into the eight figures.

chiefexecutive.net

 

[brokencycle]

There's research suggesting an inverse relationship between CEO pay and stock performance.

Does Higher CEO Pay Produce Better Company Performance?

CEO pay has risen tremendously over the past few decades with most chief executives at large public companies earning well into the eight figures.

chiefexecutive.net

I have a business plan to pay my top executives the median salary in the country. We can't lose. Invest?

Edit: In seriousness after reading the article, it said that stock/variable comp was the biggest component of most CEOs. I wonder if overweighting of compensation for CEOs to stock price is causing worse performance. They make decisions they believe will positively impact the stock price in the short term, and that impacts long term growth/profitability/health/whatever and thus the stock doesn't actually grow as much.

 

[imatlas]

Boards are nothing but Gentleman's Clubs.

Coming out of B-School my wife's mentor was an outside director of Philip Morris on their audit committee. When she tried to raise the alarm about some sort of malfeasance she was removed from the board and blackballed. Her career never recovered. It was absolutely vicious - and it was spearheaded by her own former mentor, who was CEO.

 

[concealed]

CEO Pay Machine by Steven Clifford is a good book on this topic. Just finished it a few weeks ago, covers everything discussed in this organization. Written by former CEO and HBS grad, not purely academic nonsense. Worth a read.

 

[ericgereghty]

What?? So CEOs should get the performances bonuses in good times, but in bad times they shouldn't get clawed back for doing poorly? It's not a one way street man. If your contract is based on 'performance', and your company is asking for a bailout, guess what, you fucked up somewhere along the line.

No one is saying it's easy. We're simply saying- if you job is based on performance, it should go both ways. I don't know why this is controversial.

Holding people accountable? Madness.

The whole argument of we need to compensate talent or else they're going to walk out the door is total bullshit. A c level executive isn't going to walk out the door to another company because there aren't a lot of other c level positions open that will pay. Instead it's just a giant circle jerk to ensure they all get paid a **** ton by calling each other talented.

It's sad how not wrong this assessment is.

 

[SkinnyGoomba]

What?? So CEOs should get the performances bonuses in good times, but in bad times they shouldn't get clawed back for doing poorly? It's not a one way street man. If your contract is based on 'performance', and your company is asking for a bailout, guess what, you fucked up somewhere along the line.

No one is saying it's easy. We're simply saying- if you job is based on performance, it should go both ways. I don't know why this is controversial.

If that’s important to you, then push to have that sort of thing built into their contracts. If you’re a stock holder than vote accordingly.

My overarching point is that I think we’re just looking for someone to direct our ire at now that the economy has fallen apart and I’d rather see our governments save the economy from collapse and work to put some new levers/rules in place to prevent this sort of thing occurring in the future.

This thing we do now where we just drum up a few people to blame when very few saw this coming just seems like a dog and pony show aimed at appeasing an angry public. It accomplishes very little and works to distract from actually getting things back on track.

 

[jbarwick]

So India has basically shut down and is not allowing people to go to work, at least no call center support. While there are only 499 cases currently, likely due to lack of testing, this could have a long-term impact for any company that relies on customer support.

 

[Texasmade]

If that’s important to you, then push to have that sort of thing built into their contracts. If you’re a stock holder than vote accordingly.

My overarching point is that I think we’re just looking for someone to direct our ire at now that the economy has fallen apart and I’d rather see our governments save the economy from collapse and work to put some new levers/rules in place to prevent this sort of thing occurring in the future.

This thing we do now where we just drum up a few people to blame when very few saw this coming just seems like a dog and pony show aimed at appeasing an angry public. It accomplishes very little and works to distract from actually getting things back on track.

I always vote against the executive compensation pay package. Unfortunately I don't own enough shares to influence anything.

 

[venividivicibj]

If that’s important to you, then push to have that sort of thing built into their contracts. If you’re a stock holder than vote accordingly.

My overarching point is that I think we’re just looking for someone to direct our ire at now that the economy has fallen apart and I’d rather see our governments save the economy from collapse and work to put some new levers/rules in place to prevent this sort of thing occurring in the future.

This thing we do now where we just drum up a few people to blame when very few saw this coming just seems like a dog and pony show aimed at appeasing an angry public. It accomplishes very little and works to distract from actually getting things back on track.

Leaders should not be held accountable for performance during their tenure?

also you’re strawmanning the ‘I’d rather see the government save the economy from collapse’, which has nothing to do with clawing back exec comp/talking about their pay scales

 

[venividivicibj]

Who better to give bailout packages than...current execs!