Originally Posted by
Blodrast
Isn't the spirit of capitalism to have the most efficient people in the job ?
Well, it's the spirit of capitalism that in the long run, the market will find efficiencies. Doesn't say nothin' about individual companies and/or organizations. They can be big cans of crazy juice.
Good example: High-tech CEOs.
An analysis of the 100 largest technology companies finds that those with the highest-paid CEOs in 2005 had the worst returns.
In the recent study, DolmatConnell & Partners, an executive compensation consulting firm based in Waltham, Mass., found there was an inverse correlation between tech CEO pay and shareholder returns over a one-year period. Companies analyzed in the study included Cisco Systems, Dell, EMC, Google, Hewlett-Packard, IBM, Microsoft and Oracle, as well as telecommunications providers, technology services companies and products distributors.
The one-third highest performing companies paid their chief executives an average of $7.12 million--while the bottom third paid their CEOs $9.29 million. The study compared direct compensation, which includes base salary, bonus and value of stock grants.
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