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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (103645)	3/20/2006 9:16:43 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Those CEOs are doing a bang up job. I'm testifying in support of Ken Lay next week and I'm going to say just that. Nobody can rip off the worthless folks retired on pensions and recirculate that money to the productive CEOs like Enron. <VBG>

To: Tommaso who wrote (103645)	3/20/2006 1:19:21 PM
From: Lazarus_Long	Respond to of 132070

Remember some decades back the idea of "alignment of shareholder and management interests" was sold? I think that's where this problem came from. To implement the idea, managers, and particularly CEOs, got options to increase their ownership. This also often had the effect of reducing their tax liability as compared to wages. And another side effect was to get management to lie about earnings to get stock prices up (hence Lay, Chainsaw Al, and many others). In bear markets, they just reprice the options. Neat solution. Works either way! The idea that the time and labor of a CEO can be worth hundreds of times that of the common worker is absurd. The reality is that CEOs have control of their compensation, whereas the average worker does not. Yeah, the board sets the CEOs compensation. So who effectively picks the board and effectively runs it?