Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: combjelly who wrote (792487)	6/29/2014 5:06:30 PM
From: i-node	Read Replies (1) of 1575982

>> It has been known for decades that CEO compensation and the performance of the company are unrelated. In fact, as we saw with the Economic Bellyflop, a lot of them are either incompetent with no idea of what is going on in their companies, or criminal. Maybe even both. They're certainly not "unrelated". If you offered to pay a CEO minimum wage, you might get one, but likely not a very good one. It is an arms-length negotiation process, and if a BOD sets its sight on a particular person demands a lot of money the BOD can decide whether or not it is worth paying for. Great CEOs are rock stars. There are plenty of CEOs who are close to irreplaceable. Some would argue Steve Jobs was. Many would argue that only Mel Karmazin could have done what he did at Sirius. People would not buy $100 tickets to hear Clapton's guitar tech perform, although he might be a great guitar player in his on right. >> What capital is the CEO of Mickey Ds raising? He may not be raising capital right now, but he is responsible for the proper allocation of a lot of it, and a lot of the pay is for dealing with future events in a competent manner. Two weeks ago KFC faced something of a PR crisis which was handled with extreme competence. Shareholders would not have wanted an order taker at KFC doing that job. But the bottom line is it is no one's business but the BOD and their shareholders what a CEO is paid.

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