Never can understand why people bitch about CEOs getting paid so much?

Search

Member
Joined
May 27, 2007
Messages
39,461
Tokens
They are the boss. They most likely helped create the business. They deserve more pay.
 

New member
Joined
Sep 24, 2012
Messages
20,483
Tokens
Of course they deserve more pay then everyone else since they are the boss

But not the millions and millions more than everyone else.

Most of them are pretty clueless, ever seen the show undercover boss?
 

Member
Joined
May 27, 2007
Messages
39,461
Tokens
Of course they deserve more pay then everyone else since they are the boss

But not the millions and millions more than everyone else.

Most of them are pretty clueless, ever seen the show undercover boss?

This is the part I don't get. Why not millions and millions? It's their company. They can get paid what they want.
 

Member
Joined
Jan 14, 2012
Messages
2,941
Tokens
Problem isn't in the pay. It's the incentive. I'm sure there are much more intelligent posters than me that will take the time to explain.
 

New member
Joined
Sep 24, 2012
Messages
20,483
Tokens
This is the part I don't get. Why not millions and millions? It's their company. They can get paid what they want.

In some cases they may be the owner but most of the time the ceo is not the owner of the company unless it is a small private firm
 

Member
Joined
May 27, 2007
Messages
39,461
Tokens
In some cases they may be the owner but most of the time the ceo is not the owner of the company unless it is a small private firm

I mean, owner, CEO, either way. Why is it anyone's business to tell the company what they should be earning?
 

Member
Joined
Jul 14, 2007
Messages
31,503
Tokens
Problem isn't in the pay. It's the incentive. I'm sure there are much more intelligent posters than me that will take the time to explain.

The rise of activist investors is a very good trend for the most part. Much tougher for bad CEOs to continue to run a company with complacency or incompetency.
 

Member
Joined
Jan 14, 2012
Messages
2,941
Tokens
The rise of activist investors is a very good trend for the most part. Much tougher for bad CEOs to continue to run a company with complacency or incompetency.

Not sure I agree with this. Changing the ceo incentive plan fundamentally changed big business in america. It's not about whats best for the business. It's what best for the shareholders.
 

Gunga galunga... gunga, gunga-galunga.
Joined
Jan 1, 2001
Messages
4,196
Tokens
businesses exist for the benefit of shareholders (i.e. to create value for them)
shareholders elect the Board of Directors
the Board of Directors sets CEO pay
 

Member
Joined
Jul 14, 2007
Messages
31,503
Tokens
Not sure I agree with this. Changing the ceo incentive plan fundamentally changed big business in america. It's not about whats best for the business. It's what best for the shareholders.

Most activism advocating for shareholders is to improve operations though.

It provides clear checks and balances that weren't in place before. It isn't always perfect but on average companies with activist investors tend to do significantly better after they take a position. Most of the time they take positions in companies that clearly need to make changes but are too stupid to figure that out themselves. More rights for shareholders the better.....

As far as what's best for business/shareholders, that was happening a long time before activism tookoff. Companies being too short-term oriented just a sign of the time "instant everything" times we live in.
 

Gunga galunga... gunga, gunga-galunga.
Joined
Jan 1, 2001
Messages
4,196
Tokens
i think activists can be good at times as long as they arent too short sighted
there are some complacent, long tenured Boards out there that need a kick in the ass by an activist
 

Member
Joined
Jul 14, 2007
Messages
31,503
Tokens
i think activists can be good at times as long as they arent too short sighted
there are some complacent, long tenured Boards out there that need a kick in the ass by an activist

Most board members really don't know shit. They just sit for the prestige and are fine with the status quo as long as the company is humming along.

People can find hedge fund managers obnoxious but they do know the ins and outs of many of these industries.
 

FreeRyanFerguson.com
Joined
Sep 21, 2004
Messages
13,308
Tokens
It's a little silly to bring someone in to be CEO, the company declines as well as the stock price, then 4 years later he's out and has banked $100 mil. Of course anyone living in the real world with bills is going to question that. Probably a lot more corruption than we'll ever know about why people get those jobs too.
 

New member
Joined
Sep 24, 2012
Messages
20,483
Tokens
It's a little silly to bring someone in to be CEO, the company declines as well as the stock price, then 4 years later he's out and has banked $100 mil. Of course anyone living in the real world with bills is going to question that. Probably a lot more corruption than we'll ever know about why people get those jobs too.

Great post
 

Member
Joined
Jul 14, 2007
Messages
31,503
Tokens
Yes there are some bad CEOs but if they have support of the board then shareholders pretty much have no power. This is where activism comes in to give shareholders more power.

You can say it potentially gives them too much power and stifles long-term thinking but most research shows it improves business operations.
 

FreeRyanFerguson.com
Joined
Sep 21, 2004
Messages
13,308
Tokens
A more silly idea is the fact that people spend 100K to go to a university and major in business. That PhD academics that have never managed a lemonade stand are somehow business experts that are going to help people get business savvy. I have a business degree and I really don't have the slightest idea about what it was that I was supposed to have learned when I was there. Maybe if I had majored in accounting I would have gotten a specialized trade, but a business degree is a complete joke. College in general is going to be priced out of relevance in the coming years, unless you are going to be a doctor or lawyer.
 

Member
Joined
Sep 21, 2004
Messages
19,184
Tokens
yeah if Nike can find more kids to make their shoes and apparel cheaper they could pocket even more money guess it is kind of a great model :ohno:
 

Member
Joined
May 27, 2007
Messages
39,461
Tokens
A more silly idea is the fact that people spend 100K to go to a university and major in business. That PhD academics that have never managed a lemonade stand are somehow business experts that are going to help people get business savvy. I have a business degree and I really don't have the slightest idea about what it was that I was supposed to have learned when I was there. Maybe if I had majored in accounting I would have gotten a specialized trade, but a business degree is a complete joke. College in general is going to be priced out of relevance in the coming years, unless you are going to be a doctor or lawyer.

Don't agree at all.
 

Forum statistics

Threads
1,106,902
Messages
13,439,400
Members
99,345
Latest member
08winlink
The RX is the sports betting industry's leading information portal for bonuses, picks, and sportsbook reviews. Find the best deals offered by a sportsbook in your state and browse our free picks section.FacebookTwitterInstagramContact Usforum@therx.com