Regulating the pay of CEOs, nets you nothing.
All you get is an inferior grade of CEO, who may not provide the best management available. And the corporation that is failing, does not yield the tax revenue of one that is expanding and growing.
The board of directors, given a free hand, will drum out the inferior CEO pretty quickly, if the corporate goals are not being met. The high rate of remuneration is an effort to attract the best there is.
“Regulating the pay of CEOs, nets you nothing.”
Besides that, it’s none of the government’s businees.
The Board of Directors have not been drumming out underperforming CEO’s, in fact, they have been subsidizing them with pay raises.
When Denardo left Home Depot after it had lost much of it’s value, he was handed a 20 million dollar door prize only to be hired by Chrysler Motors.
That will send all big US companies packing. Dubai is the current favorite “home” country.
They often times do not though. I am not in favor of the government interfering with the market but you gotta admit that too many boards are padding their own pockets or not watching over their shareholders’ rights and interests. Think the shareholders would agree to fund so many failed a-holes or pay out huge packages? I don’t see how voting on issues would allow companies to function properly though....
Right, this happens all the time. /s
Can you say “Bear Sterns”?