Bad CEO's pocket 16.5 million when being fired...

[Testosterone boy]

That is the average compensation given to S&P 500 CEO's as they were being asked to leave. Perks add about 50% to this sum.

So what are the board of directors doing? Looks like they are looting the corporate treasury to me. Isn't their responsibility to watch things closely and keep an eye on stock performance? It used to be, now they are a gang of crooks spreading the loot around.

 

[ajtomasi]

they need to pocket a big black cock in their face!

 

[KAYNE]

MOST CEO'S ARE OFFERED A BIG COMPENSATION PACKAGE WHEN ASKED TO LEAVE. THE LOGIC BEHIND IT IS THE COMPANY IS GOING TO SAVE WITH A NEW CEO. THE LAME DUCK CEO IS USUALLY COSTING THE COMPANY MILLIONS. LOOK AT ROSS JOHNSON OF R.J. REYNOLDS BEFORE KRAVITZ DID THE LEVERAGE BUYOUT OF THE COMPANY.

AS FOR THE BOARD OF DIRCECTORS LOOKING OUT FOR THE COMPAY'S VALUE AND WHATNOT....THATS THE IDEA BEHIND IT. HOWEVER, THERE IS SOMETHING CALLED AGENCY THEORY WHICH PLAYS A BIG PART IN THAT. THEY HAVE NO VESTED INTEREST IN THE COMPANY (USUALLY) THEREFORE THEY DO NOT ACT IN THE BEST INTEREST OF THE STOCKHOLDERS (THATS THE THEORY ANYWAY).





KAYNE

 

[KAYNE]

It's the American business principle. Executives do whatever they can to bring as MANY bucks to themselves as possible. Including voting themselves huge compensation packages.

NAV
EXECUTIVES CANNOT VOTE THEMSELVES ANYTHING AT ALL. THE SEVERANCE PACKAGES ARE APPROVED BY THE B.O.D. WHICH BRINGS US RIGHT BACK TO AGENCY THEORY.



KAYNE

 

[vinylgroover]

We're having real problems with it here at the moment.

A few of our top companies have been slaughtered on the stock market over their poor performance, yet outgoing CEO's have been pocketing as much as $20m in some cases.

It's up to the Board of Directors when hiring the CEO's in the first place, to link any compensation to sharemarket performance at the time they are asked to leave. The problem is, most board of directors of public companies are CEO's of other companies themselves, so it all comes back to self interest.

 

[KAYNE]

The problem is, most board of directors of public companies are CEO's of other companies themselves, so it all comes back to self interest.

AGENCY THEORY.