If a CEO runs a company into the ground, I cannot expect him to know how to run a company profitably, but he’ll still make millions of dollars destroying companies.
A CEO may destroy a company just like anyone else screws anything else up in this life. I hired a guy to redo a bathroom. He’s in the business, has experience, was recommended. He was an angry incompetent probably drunk. He won’t be used by me again and he will not do as well as the guy I use now who is great and always in demand.
By what method would you prevent the first guy from getting paid? Or getting paid as much as he asked for?
Corzine IS getting screwed now for what he did. paying him less would have prevented his screw up? I think not. It will bring in even more incompetents.
Just like paying doctors less will not bring in all teh wonderful “better” doctors because they want to help people, like teh insane liberals say.
If the government limits CEO pay at private companies, the net result will be less successful American companies. tehre can be no other result.
And passing a law that they only get paid based on success is just a perversion of what already exists. It will take all risk out of the system because CEO’s will be afraid to take any. That’s what Barney Frank was after.