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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Yes, my point was, the CEO of one company is on the board of other companies, and the CEOs of those companies are on the board of directors of the other...most of the people directly involved in setting the salaries at the top directly benefit from those higher salaries.
And I'm not saying that CEOs and executives shouldn't be handsomly rewarded for their work. But my feeling is that lately executive compensation has gotten out of hand, *especially* for execs that underperform, and those who keep more of an eye on the stock price than on the long-term business. Not all execs. But some.
On the other end of things, I think it's pretty clear that worker compensation hasn't kept pace, especially on the low end of the scale. I don't know all the reasons for this. I don't think 'the man' is keeping people down as a conspiracy. But I do think it's unhealthy for society, and should be fixed if we can.