Originally Posted by chiefzilla1501
How are you measuring options, including backdated options? Were they exercised? Are you factoring in long-term incentive payouts? Are you factoring in that at any point in time, the CEO can walk out the door and collect an astoundingly high golden parachute and retirement package EVEN IF THEY FAILED? Are you factoring in the 5-year cost the CEO incurs on the corporation for making a terrible long-term decision and then walking out before the decision actually negatively affects the company? What about perks, including non-related work expenses on the company dime?
On the surface alone... median pay is way up. Beneath the surface, there's a ton of that shit above that makes the problem even worse, because we're not even fully calculating the cost of executive compensation.
You asked for solutions. There are plenty out there.
- Stop croney practices between boards and executives. Boards should to the greatest extent possible serve the shareholders, not be in cahoots with executives
- Force boards to set more compensation on long-term incentives
- Have actual threat of negative financial compensation for failure. This is huge. Our compensation structure rewards gambling and it rewards failure (it definitely doesn't punish failure)
- Continue to force transparency behind exactly what executives are being paid for and how much the median worker is being paid
- Continue to reduce cheating. Stop CEOs who are using unethical but legal practices to boost their compensation.
- Give shareholders more power to affect compensation decisions