Why is it that it doesn't matter how the company does, the CEO will either continue to be paid an exuberant amount or will get to walk away with a huge golden parachute? Imagine if CEOs were paid based on their actual performance in the company? Or didn't get the "you get to walk away with a fortune" bailout option? Do you think Stakey would still be so quick to make so many moves that have a high chance to turn into costly mistakes?
12 replies (most recent on top)
That is why we need an alternative slate of candidates for the board of directors at the next annual meeting.
If people expose upper managements devious attempts to manipulate stock prices with tricky financial data, then their stock options won't be profitable if they exercise them. (things like counting existing hbo subscribers as new hbo plus ones etc.)
executive pay is kind of like paying taxes - until the tax code is changed the rich won't pay a dime more, until boards are held accountable execs will continue to get huge golden parachutes!!!
Once you lose trust - your company is a vessel on a sea to nowhere.
"If AT&T workers had to earn their pay, they wouldn't be paid at all. Probably have to give money to the company."
Exactly!
If you we to actually look at Mr. Stankey's employment contract, you would see most of his compensation is based on certain financial performance metrics, and that is awarded in company stock. Salary is just the competitive piece he gets based on average pay of CEO's of similar size companies.
If AT&T workers had to earn their pay, they wouldn't be paid at all. Probably have to give money to the company.
I’m not sure you understand how corporate America works.
The Board of Directors are CEOs or Former CEOs of other companies. They get together vote each other tens of millions in compensation. They all are on the business round table so it is essentially vote for my compensation and l’ll vote for yours. The AT&T directors get $500k a year for less than a months work, free telecommunications, private jet travel to and from meetings , country club privileges and an offsite all expense paid meeting at a luxury resort!!
They essentially blindly sign off on what they are told. Serve on the AT&T board for ten years and you walk away with $5 million while the company stock plummets and the company tries to dig out from a mountain of debt and failed acquisitions!!
Your salary is not dependent on company performance is it?
It should not be for CEO either. He is just one person.
Remember salary is different that CPI.
More important question is the amount of compensation that CEOs get.
At most Stankey should get 1-2M a year. Then he or his predecessor Randall would not be making these incredibly risky acquisitions.
Typical reply to the OP, Stanky sycophant.
The unregulated, no accountability and inequitable for the elite pillaging of America is about up. The impoverished all the way up to the C-suite are sick of it.
Not going to happen until everyone in the BoD is fired.
Imagine if we had accurate vote counts too.
Just a dream.
Yakkity yak.
Exuberant?
Yawn...