|Modern Middle Manager
Primarily my musings on the practical application of technology and management principles at a financial services company.
Quiet Day Today
Friday, October 29, 2004 It's the end of the month, which means two things usually:
1. Our wire transfer volume spikes.
2. It seems like half of our company took the day off. I can best tell this by the number of help desk calls I hear...almost 0 so far today.
So I turn my attention to other things, like reading papers on user provisioning or thinking about the Disney suit. Is CEO/executive pay completely out of whack with corporate performance? The answer seems to be "maybe."
According to Watson Wyatt, a management consulting organization, executives whose pay is linked to stock performance by stock ownership rather than options show a positive correlation between their pay and the company's performance. Well, duh. However, companies like Disney that assign golden parachutes and stock options of unbelievable proportions for half-assed work become the poster-child for bad governance. Paul Volcker, former Fed Chairman, is concerned with corporate governance in general. When salaries get out of control in sports the usual answer is a salary cap of some sort after prolonged paralysis. What is the answer for fixing executive pay?
posted by Henry Jenkins | 10/29/2004 01:24:00 PM
Comments: Post a Comment