Busting the “Paid What You’re Worth” Myth

ElCubano said:
So companies that get bailed out and have their CEOs receive large compensations should not happen right? a bailout indicates performance was not so good I'm assuming.
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Which companies have gotten bailed out and the CEO made a ton on his compensation?

I bet the SVB guy lost hundreds of millions on his stock/option compensation.

Overall corporate bailouts are an example of capitalism gone wrong for everyone: customers, employees, executives, shareholders, and bondholders.
 
newwurldmn said:
Which companies have gotten bailed out and the CEO made a ton on his compensation?

I bet the SVB guy lost hundreds of millions on his stock/option compensation.

Overall corporate bailouts are an example of capitalism gone wrong for everyone: customers, employees, executives, shareholders, and bondholders.
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Tons of bailouts were handed out in 08. Some CEOs should have been thrown in jail. Execs made absurd amounts of money leading us into the crisis by taking on absurd risks. They weren't let go they were rewarded even more the following years. Sorry that's very unfair.

I see you edited the most absurd statement ever made on ET. You didn't give me a chance to reply to that one. "That bailouts add to shareholder value" lol
 
ElCubano said:
Tons of bailouts were handed out in 08. Some CEOs should have been thrown in jail. Execs made absurd amounts of money leading us into the crisis by taking on absurd risks. They weren't let go they were rewarded even more the following years. Sorry that's very unfair.

I see you edited the most absurd statement ever made on ET. You didn't give me a chance to reply to that one. "That bailouts add to shareholder value" lol
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There are bailouts that have added to shareholder value, which for the most part are wrong, but that's not the game here. The game is maximizing shareholder value.

It would have been great to have clawed back those bonus payments. There's definitely a moral hazard that has perpetuated because the GFC bailouts.
 
newwurldmn said:
There are bailouts that have added to shareholder value, which for the most part are wrong, but that's not the game here. The game is maximizing shareholder value.

It would have been great to have clawed back those bonus payments. There's definitely a moral hazard that has perpetuated because the GFC bailouts.
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Yes bailouts add to shareholder value is true, but that's NOT because the CEO did a stellar job. :D
 
newwurldmn said:
no. his specific point was that regulations are keeping wages down. bailouts are completely different.

what regulations have lowered wages in the free market?
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Minimum wages regulations?

As members of varying boards, CEOs are voting for compensation packages for one another well into the stratosphere compared to earlier times, and this on a relative basis and not only in absolute terms. Am I wrong about this?

Has not productivity risen well above wages as he outlined? All in the name of shareholder value rather than stakeholder value.

I think the takeaway is that power is corrupting fair play. In addition to the spoils of lobbying power for lower taxes for corporations those who own them, there is corporate anorexia “cost control” which can be stifling for the labor force but does wonders for exec compensation in the near term. Might there be some societal moral hazard here that we’re overlooking?
 
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