Recession-Proof CEO's

[Russell]

Re: Recession-Proof CEO's

Like I said I think it is the rate of compensation of some individuals. Like you said yourself, you liken it to being a doctor and perhaps that is where the problem is… these people are not doctors. Now I understand your point and the stress that is carried, I personally think that everyone should be fairly compensated for the work and effort that is put in. That being said I think it’s a worth while exercise to question what these people are doing for there money.

That all being said it’s easy to look from the outside in and say that being paid that sort of money is crazy… but if someone came up to me a offered me $24.4 million to run a company I don’t think my first reaction would be “well that salary seems a little high don’t you think”.

[RONDAL]

Re: Recession-Proof CEO's

what makes a doctor so special? cause they save people? lets face it....most doctors dont save people on the operating table with their chest open.

CEO's are responsible for hundreds of millions and billions of peoples investments, pensions etc. you lose those....you are killing them financially.

You just need to look at the fallout after the Enron collapse and the stories of people literally losing their entire life savings, and you realize the power and responsibility that CEO's weild.

[Stonewall]

Re: Recession-Proof CEO's

just like in athletics when the #1 draft pick never does anything.

Not a even comparison, draft picks don't get paid millions to quit when they don't work out.

When I hear people say that CEO's make too much money all I hear is ignorance and jealousy for the most part. Hey maybe you should start your own company if you think that the world owes you something.

No one has said the world owes them something in this thread so I don't see how that correlates to CEO's being over paid while packing nice golden parachutes.

[Russell]

Re: Recession-Proof CEO's

what makes a doctor so special? cause they save people? lets face it....most doctors dont save people on the operating table with their chest open.

CEO's are responsible for hundreds of millions and billions of peoples investments, pensions etc. you lose those....you are killing them financially.

You just need to look at the fallout after the Enron collapse and the stories of people literally losing their entire life savings, and you realize the power and responsibility that CEO's weild.

HAHA What do make doctors so special... haha... Be sure to call up the CEO of Canadian National Railway next time you need medical attention.

Like I said I'm not saying these people should not be compensated for their talents and as Kor pointed out the talent pool to do these job is very small... but don’t over state there contributions, I think it’s worth while to question a $24.4 million dollar salary.



I just hope there standing over the operating table when you show up.

[James]

Re: Recession-Proof CEO's

I don't see how that correlates to CEO's being over paid while packing nice golden parachutes.

Thats pretty simple...and I think Rondall mentioned it earlier. When you're a figure head, you can get the boot for things that are way outside of your conrol (BP ceo).

Lets say a CEO is with a company for 10 years, grows their business 100% in that time frame, acquires 80% of your market competition, posts 10 cents ahead of shareholder forecasts quarter after quarter for 9 of those years and then gets the punt because they were under their forecast for a year due to the recession. Its not fair for that CEO to get paid out for all the great guidance he provided before a recession f**ked his sales?

edit: To that picture above, all the high pay outs I noticed were prior to the recession. Get those same numbers for 2009/10 and they'll look a lot different.

****, my billing rate in 2007 was ~50/hr higher than it is today. Everyone was getting paid back then.

[Russell]

Re: Recession-Proof CEO's

Thats pretty simple...and I think Rondall mentioned it earlier. When you're a figure head, you can get the boot for things that are way outside of your conrol (BP ceo).

Lets say a CEO is with a company for 10 years, grows their business 100% in that time frame, acquires 80% of your market competition, posts 10 cents ahead of shareholder forecasts quarter after quarter for 9 of those years and then gets the punt because they were under their forecast for a year due to the recession. Its not fair for that CEO to get paid out for all the great guidance he provided before a recession f**ked his sales?

edit: To that picture above, all the high pay outs I noticed were prior to the recession. Get those same numbers for 2009/10 and they'll look a lot different.

****, my billing rate in 2007 was ~50/hr higher than it is today. Everyone was getting paid back then.

Agreed. That is where my original comment about the story came from, don't you wish your job was recession-proof.

[MusicalGenius]

Re: Recession-Proof CEO's

This thread has turned from commentary on over compensation for elite CEOs, and more into justification for those roles. CEOs are necessary in every company, regardless of size. They're important to survival, but they aren't the sole contributors to a businesses success.

To what James mentioned about rates in 2007, that was the golden year. Money rained from the skies and all you needed to do was hold out your hands to get a hold of a fair chunk. Today it's different, you need to put in a concerted effort and maintain as many relationships as possible to keep your fingers on the pulse.

[Canadian Turbo]

Re: Recession-Proof CEO's

Well when looking at golden parachutes and such you really need to see the full picture, as a lot of this stuff is pre-determined when hired and some of those guys may have been with the companies for decades.

And as for recession proof, I personally made more money in 2010 than 2007.

[luunta]

Re: Recession-Proof CEO's

And as for recession proof, I personally made more money in 2010 than 2007.

x2.

We're lucky in Canada. Pop down to the USA where the middle and lower classes are actually struggling.

[RONDAL]

Re: Recession-Proof CEO's

compensation upon departure is almost always sorted out well before a CEO leaves. It's part of their overall compensation. Just like when they say a CEO made $24million last year, its not $24million cash. Most of that is likely stock, and it will have strings attached.

As for the comment of calling the head of CNR when i'm on the operating table, now you're just being silly. I'll call the top person for the task i need done. if i need my heart reworked i'll call a cardiac surgeon. if I want a national railway built and run properly I certainly won't be calling a doctor.

I like this thread to people complaining about oil companies profits. So an Exxon or BP made $30 billion or whatever it was last year. It SOUNDS like a HUGE number. But relatively speaking when you look at the net worth of the company its not triple digit % earnings. They make their 7-10% or whatever it is. Thats a good return on your asset base. But the idiots of the world hoot and hollar that they are making too much money.

When CEO's are responsible for that amount of cash, and the pool for them is so small, you've got to expect they are going to command the cash they do.

If they didn't deserve it, and these people were easy to find, board wouldn't place them as CEO's, and they certainly wouldn't pay them what they do.

Did no one take first year economics?

[James]

Re: Recession-Proof CEO's

And as for recession proof, I personally made more money in 2010 than 2007.

well, yeah, me too, but now I just dont make as much money for my pimp

[JLam]

Re: Recession-Proof CEO's

Who is to say its overcompensation? The board is willing to pay these amounts for not only the work that is to be done but also for the augmented CEO, his relationships, influences, knowledge, leadership. In fact I would say they are under compensated as technically their job description is to increase share holder value. They generally increase the value for all stakeholders; customers, employees, B2B partners, and shareholders.