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

To: combjelly who wrote (293472)	7/5/2006 11:13:03 AM
From: Taro	Read Replies (1) \| Respond to of 1577060

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

To: combjelly who wrote (293472)	7/10/2006 4:26:22 PM
From: tejek	Respond to of 1577060

seems to contradict your former post below" Not really. 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. How about VTSS where the CEO got a nice compensation package and performance was less than stellar due mostly to market conditions......or so it would seem? And who then it turns out made backtracking options a spectator sport. The epilogue of that whole fiasco is that the CEO got fired; the board hired a new CEO and promptly backtracked option payouts for him; and then hired a CFO at a million dollars a pop who commutes weekly from AZ. Can someone fire the board please?