Wednesday, March 21, 2012
CEO Compensation
So we are all well aware that most CEO's yearly compensation is far more than necessary for a human to comfortably live. I recently read this Forbes article that breaks down compensation for CEO's at the top 500 American companies. This article was interesting because it showed the different systems each CEO was compensated with. Many CEO's make somewhat modest salaries with the large portion of their income coming from stock options. It was interesting to see the comparison between the best and worst CEO's for the cost. This was rated on a series of factors: Stock performance, performance compared to the S&P 500, the CEO's compensation, and the annualized stock performance over the persons tenure. It was interesting to see that Marc Benioff from salesforce.com was the number one, delivering a 41% annual return for shareholders! I recommend reading this article. It has some very interesting conclusions.
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Hi Mike,
ReplyDeleteVery interesting article. For most of us we say that CEO's are overpaid without really having a lot of research to back this up. I am surprised that the CEO's really are not being paid more. I think that the CEO has tons and tons of responsibilities and should be compensated fairly for it, but if CEO's are not performing well they should not be able to retain their jobs being they are being paid to perform excpetionally well for the company. I think the CEO should be compensated for all the responsibilities they carry but should be able to produce great results.