How to succeed in business without really performing
by Miki SaxonThe New York Times is running a great series on CEO pay.
We’re all taught the value of hard work, exceeding goals, giving our all, but some have found a better way—getting paid for non-performance.
Speaking of non-performance bonus money; because Coke had a $2.9 billion noncash charge in the fourth quarter they cut 3500 workers and execs missed their performance bonus targets. However, save your executive sympathy. The Board stepped in, giving “…millions of dollars in “discretionary cash awards”…the chief executive, will receive a cash award of just over $1 million. That almost matches his $1.1 million salary…the chairman, will receive an $811,368 award. Five other executives…will receive bonuses ranging from $320,188 to $393,683.”
There’s a simple explanation (excuse?) for these giant pay packages, the same one that kids have been using for generations—peer pressure.
A newer happening is that US-style CEO pay is being exported to Europe, but it’s doubtful that it’ll affect the trade deficit.
Even great performance pay raises questions when it averages $144,573 a day for 13 years.
Then, of course, there are stock options.
If little girls are made of “sugar and spice and everything nice” and little boys are made of “snakes and snails, and puppy dog tails,” then these CEOs are made of ego and greed and the skill to mislead.
Which still leaves the question, what are Boards made of?
Your comments-priceless
Don’t miss a post! Subscribe via RSS or EMAIL
Subscribe to MAPping Company Success 
June 11th, 2007 at 12:18 pm
[...] only that, but you don’t even have to be good at what you [...]
March 10th, 2008 at 12:18 am
[...] summer I wrote a post called How to succeed in business without really performing and I’m here to tell you the practice is alive and [...]
October 13th, 2008 at 6:59 am
[...] year when I wrote about CEO pay I said, “If little girls are made of ’sugar and spice and everything nice’ and [...]
October 21st, 2008 at 8:32 pm
[...] true. Check out the links in How to succeed in business without really performing if you have any [...]