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

To: combjelly who wrote (293380)	7/5/2006 12:47:00 AM
From: Elroy	Read Replies (1) \| Respond to of 1573950

"Dell could cut the pay of all its executives, they would leave the company to work elsewhere as they are highly in demand in the market" This is merely a theoretical argument. There seems to be very little correlation between executive compensation and the performance of a company. Fine, but I'm just thinking through what actually happens when the plan goes into effect. Say all Dell executives get 80% paycuts, but still make ~$150-$250k per year. So Dell's cost structure is even more attractive since they have saved all that salary cost. Probably we would see significant management departures from Dell, and I guess your theory is that that wouldn't affect Dell much since there are plenty of employees now making $100k that can replace the departing managers for $150k?