Sunday, April 10, 2011
Are Corporate CEOs in Public Companies Worth Their Salaries?
The Sunday, April 10th New York Times' Business Section includes an article (see link) titled "The Drought Is Over (At Lest for C.E.O.s)" which discusses the return of the huge paycheck for CEOs in American public companies. After reading the article and summarizing it, state your views in the blog. Be prepared to discuss the article and your opinions in class for extra credit points.
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This article is talking about CEO salry pay is being extremely high. It has increased more since the recession. Im glad that the shareholders now have a voice of opinion of why CEO are making so much money. Shareholders are looking forward to seing some results. Why did it take so long to uncover the CEO's in these companies who pay is in the millions? And in the market place there is always something different going on whether it is up or sideways or down that is strange
ReplyDeleteWhy was the CEO at a 12 percent increase in 2009? CEO is on the rise with companies like capital one and Goldman Sachs. The highest payed CEO was Phillippe Dauman who made 84.5 million in just nine months. I am glad that the securities and exchange comission are considering to look into it and make a tremendous change.
ReplyDeleteit's good to know the CEO's are back on track compare to how the recession hit them.so would it be more jobs availabe to people who out there that are ineed and for those that house that are going into fore closure seems like how their annual rate 1.678 trillion dollars.
ReplyDeleteI believe it is ludicrous that in the middle of such a horrid economic crisis as the one that the United States is going through, the first measure taken by big companies would be that of increasing their CEO’s already outrageous salaries. It is understandable that CEO’s play an important role in determining the company direction and their degree of success, however, their importance shouldn’t be overstated, especially in the face of the shareholders’ express opinions. The article mentions that despite the shareholder’s votes being taken into consideration ‘in-theory’, several big companies such Hewlett-Packard seem reluctant to actually follow through with their shareholder’s opinions and votes regarding the CEO’s salaries. I honestly think that such behavior just undermines the company’s credibility, not only to their shareholder’s but to anyone else who is exposed to said information.
ReplyDeleteThe problem is the confusion over money. Money is simply a unit of exchange. What counts is actual wealth--goods and services that are produced. The more goods and services we produce as a society, the wealthier we are as a society.
ReplyDeleteIts good to hear that the office jobs and those who are executives are receiving more than they did before the recession hit, but what about the other people. I am pretty sure that they were hit as hard during the recession compared too others. They are use to the good pay but now were what i would call "in the norm" for today society. The living on the paycheck to paycheck. What happened to the people in the lower class and the middle class (now basically lower class too)? Yes, the CEO's job may be important, but for their salaries to be double digit millions. MY main thought after reading the article is that America has their priorities messed up and are not logical. But I am also glad that we are slowly coming out of the recession. next problem would be the sky-rocketing gas prices in my book.
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ReplyDeleteUnlike other jobs, the paychecks for top executives have started to rise since the most recent depression. The most shocking part is that some of them are earning more now than before the recession. Even though C.E.O.s are earning multimillion-dollar paychecks, they are not hiring people to help the rest of the economy. While people struggle to keep their houses and their jobs, there are C.E.O.s who are earning more than double what they earned last year. With the median pay for C.E.Os being $9.6 million (12% increase from last year), the guys on the high end of that curve, like Philippe Dauman, are getting paid $84.5 million in nine months. Ray R. Irani, with a paycheck of $76.1 million dollars, has had an increase of 142 percent since his previous year.
ReplyDeleteMany of the shareholders from companies with high paid C.E.O.s are trying to pass regulations for a rise in compensation. They are trying to pass a vote on “say on pay” to change the companies relationship between investors and corporate executives. The voting has caused some of the C.E.O.s from companies like Hewlett-Packard to rebuke their “excessive pay packages.” In the end, only three companies receive majority negative votes on corporate pay. Even with this voting, companies, like H.P., still seem to pay the C.E.O.s high paychecks even when the company is doing poorly. For now, the only tactic to level out this situation is the “say on pay” voting.
Tania Jarquin
SYG 2000
MWF 9:00AM