Quote:
Originally Posted by spooky
Think of a CEO like an NFL player, a free agent in a competitive market. This is the guy who has the most influence on how well a huge company employing thousands, maybe tens or hundreds of thousands, does financially. A bad player may cost you the company, an exceptional player may make the game's winning touchdown. If you can't afford to pay top dollar to an exceptional player, that player will go to another team that can pay. You stand on principle and pay peanuts, you are going to get a shitty CEO by comparison and stick it to the working man by causing him to lose his job while the company flounders.
|
Bad analogy... unless you're imagining there are NFL players that make their teams lose (or go out of business altogether) and still get paid top $. There are a lot of CEOs out there that are completely dysfunctional for their companies, yet rake in 10s or 100s of millions in compensation. In large part, executive hiring and compensation is a feudal rather than merit based system. It is actually possible to pay peanuts and get a good CEO or pay millions and get a Loser.