Business and Financial News – New York Times.
There are many CEO’s, and other C-Level Executives, who have been compensated handsomely for delivering exceptional results and returning above average returns and dividends for their shareholders. In the current state of the global economy, it is hard to justify such excessive packages from MOST, but not all executives. I have always been a fan of Steve Jobs for his posture on compensation where he has real skin in the game, having worked for $1 and amassing his fortune through stock. Under the leadership of Jobs, Apple has performed remarkably well over recent years, generating more than its share of millionaire co-workers and making a lot of money for individual and institutional investors alike. The leaders of the auto industry, on the other hand, have lavished themselves in compensation packages that are not commensurate with the results they have delivered to their shareholders and co-workers. Where is the equity, where is the responsibility. Many CEO’s have their Board’s in their pocket as they scratch each others backs. It is time for change in corporate america, and elsewhere around the globe. Pay at the highest levels, as well as throughout the corporate heirarchy and board rooms, should be based on performance.
Obama is forcing the discussion and having the difficult discussions that should have occurred long before this financial meltdown mess began. Corporate excess and greed is not something which can be tolerated.
I am a capitalist and supporter of a free market system and providing people with the opportunity for advancement and wealth accumulation. I am not, however, a fan of C-Level mismanagement of the assets which have been entrusted to corporate leaders to create shareholder value and provide jobs for deserving and hardworking citizens.
There has been a lot of emphasis on ethics and corporate responsibility in business schools of the past few years. Perhaps there should be a continuing education track developed which all corporate leaders are required to take and if they are found to misuse the assets of their shareholders or knowingly participate in the falsification of corporate records, they should be subject to felony prosecution; not just saying it, but doing it.
I am confident when we get to the other side of this global economic crisis, we will be in a better place, but we do need to ensure we stay focused on the free market enterprise system, with a focus on innovation and transformation, not becoming a socialistic society wher the government tells us how things will be. There are a lot more vey smart people in corporate america and running their own businesses than there are in Washington, it is important that they not get caught up in the tempations of focusing on their own personal needs and accumulating wealth and toys at the expense of others.
