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Originally Posted by aceventura3
Do you feel the same way about actors in poorly performing movies? Athletes on poorly performing teams? Politicians in poorly performing cities/states? Teachers in poorly performing schools? I know it is relative, but pay for performance - is pay for performance. I agree with pay for performance across the board.
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To some extent - however, in the case of a CEO, who has control over the entire organization, the impact of his performance on the success or failure of the company is much greater than what the performance of a single teacher is in an entire school. Additionally, there is no real way to compensate a really, really great teacher for exemplary performance that is comparable to the vast bonuses and benefits a CEO might earn.
So, while in principle, I like pay for performance tie-ins, it is not valid to compare the influence a CEO has to that which the average worker has.
I do think that sports stars are a more valid comparison and that their compensation works best when tied to performance.