Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
The Competition
FedEx Discussions
FedEx CIO Robert Carter Pay Hikes 80%
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="59 Dano" data-source="post: 1012218" data-attributes="member: 23516"><p>Jensen and Murphy were a pair of economists who studied CEO pay and wrote a paper on it in 1990. At the time most CEO's got a salary and a performance bonus. The bonus was usually a very small percentage of the increased performance. I can't remember and don't have the time to go look it up, but they got something like a 1% bonus for a 20% increase in the company's performance. Needless to say, there wasn't much of an incentive to really push the company upward and forward and there was a question of just exactly how much impact a CEO had on a company's performance, or more specifically, it's stock price.</p><p></p><p>There arose a debate between paying CEO's more or rewarding them for performance via stocks and stock options. We all know which side won.</p><p></p><p>If there is anyone to blame, it's the people who didn't want to give CEO's higher salaries and better bonuses a couple of decades or so ago.</p><p></p><p></p><p></p><p>I'll retort that the task of regulating an exec's pay lies with the stockholders and the board of his company. I don't think I should have any ability to force a CEO to take a pay cut any more than I think I should be able to force my neighbor to take one.</p></blockquote><p></p>
[QUOTE="59 Dano, post: 1012218, member: 23516"] Jensen and Murphy were a pair of economists who studied CEO pay and wrote a paper on it in 1990. At the time most CEO's got a salary and a performance bonus. The bonus was usually a very small percentage of the increased performance. I can't remember and don't have the time to go look it up, but they got something like a 1% bonus for a 20% increase in the company's performance. Needless to say, there wasn't much of an incentive to really push the company upward and forward and there was a question of just exactly how much impact a CEO had on a company's performance, or more specifically, it's stock price. There arose a debate between paying CEO's more or rewarding them for performance via stocks and stock options. We all know which side won. If there is anyone to blame, it's the people who didn't want to give CEO's higher salaries and better bonuses a couple of decades or so ago. I'll retort that the task of regulating an exec's pay lies with the stockholders and the board of his company. I don't think I should have any ability to force a CEO to take a pay cut any more than I think I should be able to force my neighbor to take one. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
The Competition
FedEx Discussions
FedEx CIO Robert Carter Pay Hikes 80%
Top