tag:blogger.com,1999:blog-6251536431387620361.post4703076494724526452..comments2023-06-11T08:03:27.243-05:00Comments on Inside Bobby's Head: Business Leaders agree - I am right!Bobby Kearanhttp://www.blogger.com/profile/15959917060694822750noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6251536431387620361.post-23113082468650649882011-08-11T16:23:22.882-05:002011-08-11T16:23:22.882-05:00Bobby,
Tying pay to performance for public compani...Bobby,<br />Tying pay to performance for public companies may not bring down pay; it may increase it for those who perform and cut if for those who don't. The average may go or up or down, but the best paid will probably be paid more, ergo greater inequality and higher multiple of CEO pay to worker pay.<br /><br />Look at the way private company CEOs backed venture capital and buyout funds are paid. They get relatively modest compensation until a liquidity event and then management usually gets about 15-20% of the profits. Their pay is very closely tied to shareholder return and highly variable, but also can be extremely high.<br /><br />Tying pay to performance for public companies is an extremely good idea, and I heartily endorse it, but it may not have the consequences you expect.Richard A. Sun, CFAhttp://www.richardasun.comnoreply@blogger.comtag:blogger.com,1999:blog-6251536431387620361.post-88009072617725318322011-03-05T17:58:32.761-06:002011-03-05T17:58:32.761-06:00This is a very coherent and well explained post on...This is a very coherent and well explained post on how capitalism can be both a generator of wealth and fiscally responsible for the economy as a whole instead of the quarterly "take the money and run" mentality exhibited by large sections of our corporate sector.David Collisonhttp://www.reformparty.orgnoreply@blogger.com