Robert ReichWhat I always hear: “We can’t afford to pay our workers $15 an hour.”
What I never hear: “We can’t afford to pay our CEO millions of dollars a year.”
Funny how that works.
dlupham@rbreich What you do hear: "We can't afford to NOT pay our CEO millions of dollars a year". with the addition: "They won't stay if we don't pay them."
Coyoty
madhadron> "They won't stay if we don't pay them."
This is where it turns into collusion. Boards are supposed to act on the shareholders' behalf. Since we turn over executives a lot anyway, boards should really be finding much better deals on them since they're not a long term investment.
But boards are stuffed with CEOs, so they have a conflict of interest.
A fun idea for activist shareholders: ban anyone holding an executive position in another company from holding a board seat.