Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: neolib who wrote (92594)	10/30/2008 8:35:08 PM
From: TimF	Read Replies (1) \| Respond to of 541749

She didn't directly mention it in regards to Apple, but "Carl from Chicago" brought up the general issue that many CEOs don't perform well, and she agreed with it, but argued how it didn't invalidate her point. I quoted both. If Shannon could show a correlation between extreme executive pay and company performance that would be more compelling. She wasn't arguing that higher pay for executives causes companies to do better. Good senior executives cause a company to do better. The value of having good senior executives is almost always larger than what the good execs get paid. These facts cause companies to bid up the price of potential senior execs who are seen as being good, and indirectly bids up prices for the whole market. Of course "perceived as being good" does not equal "is good" and even "is good" in some more general sense, doesn't always mean "is good for the company that is thinking about hiring him or her", so you get all sorts of cases with very highly paid CEOs or other senior execs who do a fairly or even very poor job. But the high pay for the execs makes at least very general sense in market terms. Shannon's point about they could start (or purchase) their own companies, is not IMO as important as it apparently is in hers, but its a factor as well, and also helps increase the prices for compensation of senior execs.