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 (293472)	7/5/2006 11:13:03 AM
From: Taro	Read Replies (1) of 1576998

If stellar performance gets stellar compensation, yet poor performance gets stellar compensation, doesn't that weaken the correlation with performance? At that point, the correlation is with being CEO, not how well the company performs. This started about if stellar performing corporations are mostly run be highly paid management or not? We were talking about well performing corporations and I said the correlation is there and its strong. Corporations of stellar performance almost never are run by low or moderatly paid management, all of that viewed over say 5 years. As for (badly) underperforming corporations with exessively over compensated management - again seen over a 5 years period - I am convinced that they are by far outnumbered by the former above. Call me naive, but that's the way capitalism and free markets outperformed any other approaches to running the economy in the past 100 years or more. taro

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