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


To: Elroy who wrote (293382)7/5/2006 1:24:57 AM
From: combjelly  Read Replies (3) | Respond to of 1574002
 
"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?"

Dell isn't your best example. They have a very flat structure compared to most companies. Plus it makes several assumptions, amongst which there would be a large amount of departures. Moving from Round Rock, for example, to Curpentino or Palo Alto for a few thousand difference in compensation is probably not wise.

Besides, Dell isn't the one I would target here. The CEO of GM is very well compensated, yet GM isn't what anyone would describe as a leading light amongst corporations. They have underperformed by pretty much every measure, yet executive compensation has been in the forefront of the country. There are numerous other examples of underperforming corporations with executive compensation being higher than national average. The employees are expected to accept wages that underperform with respect to inflation, assuming they don't get riffed, but the executives get continual raises and bonuses as the company stagnates at best?