Friday, July 07, 2006
Executive Pay? The Board?: I'm only asking the questions?
So the Atlanta Journal-Constitution has reported that Florida Governor Jeb Bush told Fortune magazine that the problem is not that CEOs make so much, it's that they are being paid for the wrong things. As for what to do, Fortune suggests, "Five ways to change-pay shareholders first, base bonuses on economic profit, do not rely on restricted stock, favor options cautiously, force CEOs to hold, not sell."
I Have to admit that I love this discussion. But as with all programs, the purpose has gotten lost in the tax laws and the accounting issues. And Corporate America creates golden parachutes because this is THE EXECUTIVE we had to have to make us a winner again. Yet, many times (or is it just the publicized ones) the charismatic leaders must be let go--and how surprised are we that we must make a huge payday. The leaders I have worked with and admire did not want a yes person. I learned from each: some of that being business and some of that being how to give them what they asked for with context. How many CEOs have been let go due to cowtowing of the next level? Where is the managerial courage to do what is right for the organization--because when it wins so does everyone.
What if Corporate America spent half of that golden parachute getting the right person for today and the future. Would the business would be better, the workforce and ultimately the shareholders?
What is the attrition rate for some companies and their CEOs? Who is responsible for that-the Board? Where are the shareholders asking why don't we hire the right person for their company--or is it just a fund or stock not a firm anymore?
Just asking the questions. Have a great weekend. Kelley
I Have to admit that I love this discussion. But as with all programs, the purpose has gotten lost in the tax laws and the accounting issues. And Corporate America creates golden parachutes because this is THE EXECUTIVE we had to have to make us a winner again. Yet, many times (or is it just the publicized ones) the charismatic leaders must be let go--and how surprised are we that we must make a huge payday. The leaders I have worked with and admire did not want a yes person. I learned from each: some of that being business and some of that being how to give them what they asked for with context. How many CEOs have been let go due to cowtowing of the next level? Where is the managerial courage to do what is right for the organization--because when it wins so does everyone.
What if Corporate America spent half of that golden parachute getting the right person for today and the future. Would the business would be better, the workforce and ultimately the shareholders?
What is the attrition rate for some companies and their CEOs? Who is responsible for that-the Board? Where are the shareholders asking why don't we hire the right person for their company--or is it just a fund or stock not a firm anymore?
Just asking the questions. Have a great weekend. Kelley
# posted by Kelley Rexroad @ 10:03 AM 
