About Management: CEO Compensation Kills Companies

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From F. John Reh, your Guide to Management

The excessive compensation paid to certain corporate CEOs far exceeds their value to their companies and stakeholders. Lately there has been some movement. Some companies and executives are beginning to "get it". They recognize that greed does not contribute to the company's success and starting to rein in CEO compensation. This week we look at two who get it, one who still doesn't, and what you can do about it.

This CEO Gets It

I write frequently about the ridiculous compensation "given to" (not "earned by") CEOs of major corporations, so it's rewarding when I can point out the rare instances when one of them demonstrates common sense... Read more

The Swiss "Get It" Too

Swiss people recently demonstrated that they understand the inequity of huge CEO bonuses. Now the Swiss people have done something about it... Read more

But McDonalds Doesn't "Get It"

McDonalds says they based their CEO's pay on "comparable" companies, but they recently stopped using Costco as one of the companies they compare to. Why is that, you wonder? Could it be because Costco is one of the few companies that compensates their senior executives fairly... Read more

CEOs Are Overpaid

The top CEOs are generally more motivated by challenge than excessive compensation. So why then are CEOs on average paid 531 times that of their average hourly worker? Is it because their pay is set by the compensation committee, usually comprised of other chief executives?... Read more

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F. John Reh
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