Comments on: Gluttons at the gate

By: best SAP Consultants

best SAP Consultants — Sun, 27 Jun 2010 06:38:02 +0000

That only shows politics. It's all about politics.

By: Michael Wiener

Michael Wiener — Tue, 12 May 2009 12:49:17 +0000

“When the government removed the tax-exempt status of cash payouts over US$1 million….” Does anyone have details regarding this exemption and when it was removed?

By: Elton J

Elton J — Mon, 11 May 2009 21:22:24 +0000

All these arguments are real. Why do we learn this in university that it is the workers who make the company , it is we who directly serve the customers or sweat to get those goods to the market? So,then why does the CEO have to make 259 times more? All he makes is the policy that can make or break the company. I dream of a Canada where every employee is allowed to be a owner in a workplace either through stock options or through self-purchase.

By: Kevin

Kevin — Mon, 11 May 2009 03:02:36 +0000

Ross, that is what I said. If you don’t like it then don’t buy from that company or buy their stock. That is your right as a consumer. But, if a company feels that they have to pay someone these amounts it makes little difference to the average consumer and it doesn’t put anymore money in your pocket or my pocket. Generally, CEO compensation has no bearing on the price of a stock or the price of the commodity. However, CEO performance Does have a bearing on stock prices. Poor performance is generally reflected by a lower stock price. So to have a chance at a good stock price, you need a good performer at the top. As such they should be rewarded. How much should they get? They get what the market will bear. Just like everyone else in their own occupation. http://www.realclearpolitics.com/articles/2007/01/the_greed_fallacy.html

By: Betsy

Betsy — Sat, 09 May 2009 18:50:39 +0000

I wonder how a fund that considers the reasonableness of executive pay would fare? Perhaps a better proxy would be shareholder policies that allow votes on executive pay.

High executive pay makes my blood boil, but I wish there were a better way to channel the rage.

BTW, good discussion this topic at http://investwithhonor.blogspot.com

By: Ross

Ross — Thu, 07 May 2009 13:58:40 +0000

Sorry Kevin,

But it does trickle down to you and me! Where do you think their pays come from? Nothingness? It comes from our pockets in the goods and services that you and I purchase.

By: At the trough « Passing Lad

At the trough « Passing Lad — Thu, 07 May 2009 06:21:16 +0000

[...] excellent article from Macleans on the extent of compensation around CEOs, and how it got to grow so large so [...]

By: Derek Pearce

Derek Pearce — Wed, 06 May 2009 13:42:09 +0000

This article is the perfect antidote to a column Barbara Amiel wrote a couple of months ago lamenting that there is now in western society a mass outrage toward the very idea of wealth. To which I replied– no, not at wealth per se, but at people being rewarded obscene amounts of money for jobs poorly done. One thing’s for sure– it’s going to take some major regulatory arm-twisting to get CEOs and boards to police themselves properly with this issue, instead of just mouthing platitudes and pocketing as much as humanly possible anyway.

By: Kevin

Kevin — Tue, 05 May 2009 22:24:00 +0000

Who cares? It doesn’t trickle down to the rest of us anyways. No one is forcing these companies to pay their CEOs this amount of compensation. If stockholders are really upset they can sell their stock and invest in ethical funds. This is only a problem in economic downturns or if a company is doing poorly. When times are good and shareholders are making money no one complains. Everyone was greedy over the last decade. Companies, executives and shareholders. For example, you hear all sorts of people in the late 50s lamenting the fact that their portfolios have lost 50%. My question is why? Being close to retirement you should have had your money in guaranteed investments. But they were greedy. Now they want to punish those who they feel “robbed” them. Well one thing you should have known is that Bay St and Wall St is not for the average investor. Money from stock isn’t used by companies to finance their business anymore. It is given to hedge funds who manipulate the price of other stocks in order to make a buck. That is why in the US 1/3 of their GDP was related to financial markets. People moving money around. But on any of these deals someone had to lose and that someone was usually the average investor. Now you cry that executives make too much money. Get over yourselves, quit crying and recognize that if you aren’t in the “old boys club” (like me) that it doesn’t matter if those guys make $1M or $10M a year. Because we will never make either anyways.

By: peimac13

peimac13 — Tue, 05 May 2009 21:25:09 +0000

It’s taken too long but it’s never too late benchmark CEO’s and executive pay to company performance. Will they still make dream figures compared to average worker? Most likely but at least it might hinged on positive results. Must be nice to run a company into the ground and be “compensated” for being let go eh.