A privately held company can compensate executives any way the owners want to. Pay the CEO ten billion dollars a year if they feel like it. No problem.
But McDonalds, etc. are publicly held companies. The boards of directors have a fiduciary responsibly to their many shareholders. And paying a failed executive $42 million is not being responsible. To the contrary. It is indefensible.
But why should the board members care? They are paid perhaps $50,000 each time the board meets. No need to rock the boat. Gotta stay on that “recommended” list whenever there is a director’s election.
Yep. Though directors of privately held companies have those same duties to shareholders. I have to assume the non-softbank shareholders of wework will be bringing a derivative suit for what their founder got paid.