Opinion column from Graef Crystal at Bloomberg about CFO pay. Includes list of 25 most highly paid CFO's. column
"When I first started out in the executive pay field more than 45 years ago, some CEOs of major companies suggested: ``Why you could double my pay, and it would get lost in the rounding.''
Maybe so then, but not today. And that's especially the case when giving the CEO an extra dollar may end up costing the shareholders $30 or $40 extra dollars because of the magnetic effect the CEO's pay package has on his top subordinates.
That's why it's so important for shareholders to stand up and object when they see a CEO getting a bomb of money without producing anything extra for them."
1 comment:
So often we hear of CEO salaries without mention of how the rest of upper management salaries are affected... wouldn't it be interesting if salaries were based on merit? Maybe extra credit could be given to bosses who manage to not break any laws within the fiscal year, regardless of whether they serve jail time.
Moira
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