Quote:
Originally Posted by Cynthetiq
Let's get some facts straight.
According to the NY Business Law Board of Directors are not allowed ANY compensation. It is the same from state to state.
It is a volunteer position on top of their normal day to day job. The CEO doesn't set his salary. The Board of Directors sets the salary of the executive management team, including the CEO.
Now, again this is about attracting talent. If I'm on one board of directors, the chances of me being asked to be on another board is very high, because I've got a talent of sorts. So there are a number of executives that are employed by one company and then sit on the board of others. Why is that? Because they understand how business should be run and how to increase profits and direct executives. Understand that CEOs bring major changes and budgets to the BoD who then approve or disapprove things. They work in tandem for checks and balances, not for conspiracy.
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This doesn't demonstrate that it's
right, just prudent if you prioritize the happiness of the man in the big seat over the happiness of all the little people. It's capitalistically correct, but that's not synonymous with being correct overall or ethical.
I'm way to young to have the experience necessary to be one of these super-CEOs, but eventually I might. I can't imagine a company slashing worker's wages or not continuing to pay them to match the cost of living just so I can get my second yacht being a smart business move. Maybe it's because of my opportunity to be pro-labor despite being in a management position, but it feels unbalanced to completely favor the man of vision over those who make the vision a reality. It should be equal.