Comments on: How Corporate Executives Should Be Paid http://weakonomics.com/2008/12/10/how-corporate-executives-should-be-paid/ Everything That's Wrong With You And Your Money Wed, 08 Feb 2012 22:32:00 +0000 hourly 1 http://wordpress.org/?v=3.0.3 By: Joon http://weakonomics.com/2008/12/10/how-corporate-executives-should-be-paid/comment-page-1/#comment-5687 Joon Thu, 14 Jul 2011 07:30:00 +0000 http://weakonomics.com/?p=560#comment-5687 I'm not sure that there is a large problem with the structure of CEO compensation.  Guidelines for award levels of both short and long term incentives are laid out in annual reports, and you don't want to punish your CEO for poor business when the markets are bad.  Most of the time a baseline standard is set that usually reflects industry conditions.  The high level of CEO compensation not only makes the CEO work hard, but also incentivizes an entire bureaucracy of employees to aspire to the position.  I think the real question is why the compensation is at such a high level in the US vs Europe or Japan.  I’m not sure that there is a large problem with the structure of CEO compensation.  Guidelines for award levels of both short and long term incentives are laid out in annual reports, and you don’t want to punish your CEO for poor business when the markets are bad.  Most of the time a baseline standard is set that usually reflects industry conditions.  The high level of CEO compensation not only makes the CEO work hard, but also incentivizes an entire bureaucracy of employees to aspire to the position. 

I think the real question is why the compensation is at such a high level in the US vs Europe or Japan. 

]]> By: Mark http://weakonomics.com/2008/12/10/how-corporate-executives-should-be-paid/comment-page-1/#comment-1465 Mark Sun, 21 Dec 2008 21:01:35 +0000 http://weakonomics.com/?p=560#comment-1465 Interesting take on executive compensation. Interesting take on executive compensation.

]]> By: Nicki http://weakonomics.com/2008/12/10/how-corporate-executives-should-be-paid/comment-page-1/#comment-1453 Nicki Wed, 10 Dec 2008 16:06:33 +0000 http://weakonomics.com/?p=560#comment-1453 What jumped out at me was the salary cap. Most jobs have a salary that is the max the worker could earn, but not for the highest level earners. I like that you point out they should have to increase each tier before theirs could also be increased. What jumped out at me was the salary cap. Most jobs have a salary that is the max the worker could earn, but not for the highest level earners. I like that you point out they should have to increase each tier before theirs could also be increased.

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