Who Leads The Leaders?
by Miki SaxonExecutive compensation is in the limelight these days—not that it’s ever out. People have always been fascinated by the lavish paychecks of high profile players, whether business leaders or Hollywood icons.
The list of executives paid for non-performance in 2006 pales in comparison to CEO pay in 2008.
We’re all taught the value of hard work, exceeding goals, giving our all, but some have found a better way—a loving Board.
Non-performance bonus money isn’t new; in 2007 Coke had a $2.9 billion noncash charge in the fourth quarter, so they cut 3500 workers and their execs missed their performance bonus targets, but the Board stepped in, giving “…millions of dollars in “discretionary cash awards.”
And no matter how good a leader is, does any performance warrant an average of $144,573 a day for 13 years?
The explanation (excuse?) for these giant pay packages is the same one that kids have been using for generations—peer pressure.
Boards claim they can’t hire the best (AKA biggest name; best negotiator) without these outsize pay packages, but there are hundreds of skilled executives that could be had for less and who would probably do more.
For all the public outcry against outrageous pay there is none against the directors who don’t just approve it, but spend their effort outbidding the other Board.
When are they going to show some real leadership instead of whining and complaining about government interference?
And when will the washed and unwashed start putting the blame where it really belongs?
Little girls are made of “sugar and spice and everything nice;” little boys are made of “snakes and snails, and puppy dog tails;” and many (not all) “leaders” are made of ego and greed and the skill to mislead.
What are Boards made of?
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Image credit: jimrhoda on sxc.hu
