All things considered, there shouldnâ??t be a fuss about President Obamaâ??s plan
to cap salaries of executives in companies that receive federal bailouts.
Thatâ??s the take of Dan Dalton, an Indiana University specialist on corporate governance.
Dalton points out that Obama is open to execsâ?? receiving more than $500,000 â?? so long as the compensation is based on performance.
For the right kind of person, the opportunity is huge, Dalton says. A turnaround artist not only could draw a huge paycheck for the effort, but also could emerge as a hero.
Americans generally donâ??t mind othersâ?? making big paychecks if the money is earned. Hardly anyone complains about the compensation of Apple chief Steve Jobs because of the magic he works with technology, Dalton notes.
Most of the gall over executive compensation rises from the execs having run the companies into the ground and still living high, he says.
What are your thoughts? Do you mind executives making huge compensations if they run their companies and institutions well?
Thatâ??s the take of Dan Dalton, an Indiana University specialist on corporate governance.
Dalton points out that Obama is open to execsâ?? receiving more than $500,000 â?? so long as the compensation is based on performance.
For the right kind of person, the opportunity is huge, Dalton says. A turnaround artist not only could draw a huge paycheck for the effort, but also could emerge as a hero.
Americans generally donâ??t mind othersâ?? making big paychecks if the money is earned. Hardly anyone complains about the compensation of Apple chief Steve Jobs because of the magic he works with technology, Dalton notes.
Most of the gall over executive compensation rises from the execs having run the companies into the ground and still living high, he says.
What are your thoughts? Do you mind executives making huge compensations if they run their companies and institutions well?
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A good boss in a company understands that if times are good, they (and the rest of the company) gets bonuses, if times are bad for the comany, bonuses shouldn't even be seen. It is as simple as, company does well, you do well, and vise versa. Large companies should have the same privlages and pitfalls as small/startup companies. The Higher ups of these big institutions should receive the same slack performance with the same coushin as the smaller companies.
Even if the boss is a good boss he/she can see downturns in the economy, it is just a matter of how can he/she respond to this situation with the least amount of financial loss (if any).
I correct those people by saying the government is not telling them....their lender is. And that is very typical.
Just like a pro-athlete or movie star, more power to them if they can get someone to fork over huge pay. I blame the Board of Directors.
CEO compensation should be tied to short-term AND long-term performance. Through their efforts, if the company is providing products, services, and jobs and growing, then pay what you need to.
But if it's all based on quarterly or even annual earnings but has sacrificed the overall value of the company as a 'going concern', then that performance should not be handsomely rewarded.