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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (287057)	5/7/2006 5:12:02 AM
From: tejek	Read Replies (1) \| Respond to of 1575584

On average these salaries don't look to crazy to me. If you run a $50 billion market cap corporation (and hopefully run it well), a million per year or so seems a reasonable paycheck. Incredible! On that basis I am supposed to agree with your very anecdotal comments and drop my argument. Look.....there's the growing belief that CEO salaries have become outrageous. After all, they are not doing God's work. I agree with that assertion whether you do or don't. Here's some reading on the subject.....knock yourself. Maybe you'll have an epiphany. 2005 Trends in CEO pay aflcio.org CEO pay eclipses the ridiculous sptimes.com Two studies reported in the New York Times last month—under the title “Stock Options: Do They Make Bosses Cheat?”—analyzing executives’ pay over the last 15 years found evidence linking large performance-based compensation packages to CEOs cooking the books or mismanaging the companies they head. Jared Harris, a doctoral candidate at the University of Minnesota, and Philip Bromley, a management professor, studied “435 companies that were forced to restate their financial statements with similar companies that did not run into such problems,” according to the Times. The report found that (a) companies granting large compensations in the form of stock options are “more likely to go broke”; (b) of the “companies where bosses got 92 percent or more of their pay in options, about a fifth ended up faking their books within five years”; (c) bosses of companies that are doing much worse than their competitors may feel a need to cheat; and (d) companies that turn in a very good year have a propensity for faking numbers the next year. The other study is by Moody’s, the rating agency. This study found that “companies with the highest paid bosses, adjusted for things like company size and performance, were far more likely to default on debt or to suffer major cuts in bond ratings,” said the Times." select.nytimes.com US uproar over option awards new front in pay row yahoo.reuters.com And this is what happens more than we like to think when stock options are an important part of a CEO's salary: Vitesse Puts CEO on Leave thestreet.com