Author Topic: How much does your CEO make compared to you? Now, that ratio is public  (Read 563 times)

0 Members and 1 Guest are viewing this topic.

Offline WTTCHMN

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 14
  • -Received: 258
  • Posts: 1638

Offline daedalus

  • O.C. Resident
  • ***
  • Thanks
  • -Given: 131
  • -Received: 158
  • Posts: 553
Wasn't CEO compensation already public for all publicly traded companies?

Offline Kings

  • O.C. Resident
  • ***
  • Thanks
  • -Given: 102
  • -Received: 127
  • Posts: 541
These CEO comparisons always make me laugh.  Everyone is all up in arms about CEOs making 1,000 times what an entry level worker makes, but nobody bats an eye when Lebron James makes 1,000 times what the ball boy makes.  These CEOs are the Kobe and Lebron of their industry.  They wouldn't be paid that much if the data entry peon could do the same job.

Offline qwerty

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 2387
  • -Received: 1496
  • Posts: 6907
Wasn't CEO compensation already public for all publicly traded companies?

Yes it was. This is the ratio relative to the average employee salary.

Offline qwerty

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 2387
  • -Received: 1496
  • Posts: 6907
These CEO comparisons always make me laugh.  Everyone is all up in arms about CEOs making 1,000 times what an entry level worker makes, but nobody bats an eye when Lebron James makes 1,000 times what the ball boy makes.  These CEOs are the Kobe and Lebron of their industry.  They wouldn't be paid that much if the data entry peon could do the same job.

This is a horrible analogy.

Offline fortune11

  • O.C. Resident
  • ***
  • Thanks
  • -Given: 103
  • -Received: 130
  • Posts: 889
These CEO comparisons always make me laugh.  Everyone is all up in arms about CEOs making 1,000 times what an entry level worker makes, but nobody bats an eye when Lebron James makes 1,000 times what the ball boy makes.  These CEOs are the Kobe and Lebron of their industry.  They wouldn't be paid that much if the data entry peon could do the same job.

This is a horrible analogy.

Agree .  the public  CEO job is way over rated .  I can say this having consulted for many of them .   incentives are horribly aligned .  as ceo , your sole purpose is to get the stock price higher by any means (including dumbfounded acquisitions) -- short termism over everything else

this is not to say anything about founder / ceos (like many posters on this forum) who actually have skin in the game


Offline Liar Loan

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 417
  • -Received: 277
  • Posts: 1435
These CEO comparisons always make me laugh.  Everyone is all up in arms about CEOs making 1,000 times what an entry level worker makes, but nobody bats an eye when Lebron James makes 1,000 times what the ball boy makes.  These CEOs are the Kobe and Lebron of their industry.  They wouldn't be paid that much if the data entry peon could do the same job.

This is a horrible analogy.

Agree .  the public  CEO job is way over rated .  I can say this having consulted for many of them .   incentives are horribly aligned .  as ceo , your sole purpose is to get the stock price higher by any means (including dumbfounded acquisitions) -- short termism over everything else

this is not to say anything about founder / ceos (like many posters on this forum) who actually have skin in the game

This is a good discussion.  I agree stock price is too easily manipulated and also subject to the whims of the market.  What would be the better way to incentivize in your opinion?  Tie it to book value or some other value measurement?

Offline fortune11

  • O.C. Resident
  • ***
  • Thanks
  • -Given: 103
  • -Received: 130
  • Posts: 889
These CEO comparisons always make me laugh.  Everyone is all up in arms about CEOs making 1,000 times what an entry level worker makes, but nobody bats an eye when Lebron James makes 1,000 times what the ball boy makes.  These CEOs are the Kobe and Lebron of their industry.  They wouldn't be paid that much if the data entry peon could do the same job.

This is a horrible analogy.

Agree .  the public  CEO job is way over rated .  I can say this having consulted for many of them .   incentives are horribly aligned .  as ceo , your sole purpose is to get the stock price higher by any means (including dumbfounded acquisitions) -- short termism over everything else

this is not to say anything about founder / ceos (like many posters on this forum) who actually have skin in the game

This is a good discussion.  I agree stock price is too easily manipulated and also subject to the whims of the market.  What would be the better way to incentivize in your opinion?  Tie it to book value or some other value measurement?

one effective method would be allow some level of "clawback" (of bonuses)  to avoid pump and dump or tie compensation to more of a longer term moving average (of profits / stock prices)

the first thing they should is stop dancing to wall street research machine and cut off quarterly guidance .  report performance quarterly yes, but give out more longer term targets



Offline nosuchreality

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 90
  • -Received: 319
  • Posts: 1443
Tie executive compensation model to all salaried employees model ona porportional to base pay model. I.e if the ceo us taking pay of a millioon and base grants annually of s million the. Each salaried employee also gets grants equal too their salary.

 Tie stock incentives to lknger time horizons with ownership vest date being a shorter term but sellable date being longer term.

But the real way is to make regulations to neuturing incestuous boards
« Last Edit: April 13, 2018, 12:05:57 PM by nosuchreality »

Offline Liar Loan

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 417
  • -Received: 277
  • Posts: 1435
Tie executive compensation model to all salaried employees model ona porportional to base pay model.

 Tie stock incentives to lknger time horizons with ownership vest date being a shorter term but sellable date being longer term.

I like your second idea, but the first idea is flawed I think.. For instance, I don't think Bob Iger's pay should be tied to the average pay of a Disneyland worker.

He might be severely overpaid for all I know, but there's no doubt he has added tremendous value to Disney, both in the present and the future, that the average ride operator has not.

 

Talk Irvine Links

[Recent Posts]
[FAQ / Rules]

Site Supporters


Related Links

Recent Posts

Re: Midterm Elections by fortune11
[Today at 06:20:30 PM]


Re: Great Park District 1 West by USCTrojanCPA
[Today at 06:15:19 PM]


Re: Listing homes with Redfin by USCTrojanCPA
[Today at 06:12:43 PM]


Re: HOT HOMES by USCTrojanCPA
[Today at 06:09:53 PM]


Robotics for kids (age 10-12 yo) by curious george
[Today at 05:56:43 PM]