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Remixer · 06-29-2011, 11:44 AM

I disagree on your statement that it all is a matter of value and that as such CEOs compensation packages are fully justified.

The merits of such compensation packages for CEOs of large US companies vis a vis the compensation of CEOs of companies with similar performance and size, but from other continents, are highly questionable.

I did not include the net income statements as they were irrelevant to the point I was making. No matter how good Deutsche Bank's performance in a financial year was, their CEO would not receive a total annual compensation exceeding US$ 15m, and it is a widely implemented CEO compensation ceiling throughout Germany. Japanese CEOs have an even lower total compensation ceiling of max. US$ 5m. Yet, some of their companies play on the same level as the biggest US companies.

There is little justification for compensation packages of CEOs of US companies sometimes ballooning into the hundreds of millions.

EDIT: Regarding profit comparison:

Toyota
Net income: US$ 5bn
CEO compensation: US$ 1.5m

Ford
Net income: US$ 6.5bn
CEO compensation: US$ 26.5m

06-29-2011, 11:44 AM	#7 (permalink)
Remixer Upright	I disagree on your statement that it all is a matter of value and that as such CEOs compensation packages are fully justified. The merits of such compensation packages for CEOs of large US companies vis a vis the compensation of CEOs of companies with similar performance and size, but from other continents, are highly questionable. I did not include the net income statements as they were irrelevant to the point I was making. No matter how good Deutsche Bank's performance in a financial year was, their CEO would not receive a total annual compensation exceeding US$ 15m, and it is a widely implemented CEO compensation ceiling throughout Germany. Japanese CEOs have an even lower total compensation ceiling of max. US$ 5m. Yet, some of their companies play on the same level as the biggest US companies. There is little justification for compensation packages of CEOs of US companies sometimes ballooning into the hundreds of millions. EDIT: Regarding profit comparison: Toyota Net income: US$ 5bn CEO compensation: US$ 1.5m Ford Net income: US$ 6.5bn CEO compensation: US$ 26.5m Last edited by Remixer; 06-29-2011 at 11:53 AM..