CEO's making huge bank

cycloneworld · 10-30-2007, 04:53 PM

Here are a couple of articles on how much big time CEOs make. Also included are CEOs making huge money in spite of their companies' plummeting stock.

The CEO of Merrill Lynch just got canned for losing over $8 billion. He gets a $160 million for leaving.
Lose $8 billion, pocket $160 million? - MSN Money

Other CEOs who are overpaid in relation to how their company is doing.
The most overpaid CEOs in America - MSN Money

The average Fortune 500 CEO makes $10.8 million.
Is a CEO worth 364 times an average Joe? - MSN Money

I understand that many athletes are overpaid but at least they are held to performance standards. If a guy doesn't perform, his next contract (if there is one) isn't going drop...he won't get a $160 million payout to leave.

throwittoblythe · 10-30-2007, 04:57 PM

Mike & Mike actually just talked about this today. They were discussing how A-rod is going to make upwards of $300M for his new contract. They were saying that the CEOs of large companies make way more than pro athletes. Also, that actors make more than athletes as well.

When you look at the grand scheme of things, you almost want to side with the athletes. They were talking about how people say "Athlete A already gets $18M a year, why does he need a bigger contract?" Well, if you asked Joe Schmo to do the same job he's doing, but he could either stay at the same salary or get a pay raise, which would he choose?

4429 mcc · 10-30-2007, 05:01 PM

Hey, if they going to pay it I'll take it. I can't blame them.

brianhos · 10-30-2007, 05:03 PM

They deserve every penny of it. This is not a job normal people could handle. These guys are under a lot of stress and deserve to be paid more.

cycloneworld · 10-30-2007, 05:13 PM

Originally Posted by brianhos

They deserve every penny of it. This is not a job normal people could handle. These guys are under a lot of stress and deserve to be paid more.

Like $160 million to lose the company $8 billion? Stressful...yes. Successful...no.

Cyclonepride · 10-30-2007, 05:16 PM

We had a similar discussion in the political cave. If the right CEO didn't give a company a better chance at large scale success, then shareholders wouldn't stand for it. The fact that it happens tells me that getting the right guy must be worth it. Unless you get the wrong guy.

jmb · 10-30-2007, 05:20 PM

Originally Posted by cycloneworld

Here are a couple of articles on how much big time CEOs make. Also included are CEOs making huge money in spite of their companies' plummeting stock.

The CEO of Merrill Lynch just got canned for losing over $8 billion. He gets a $160 million for leaving.
Lose $8 billion, pocket $160 million? - MSN Money

Other CEOs who are overpaid in relation to how their company is doing.
The most overpaid CEOs in America - MSN Money

The average Fortune 500 CEO makes $10.8 million.
Is a CEO worth 364 times an average Joe? - MSN Money

I understand that many athletes are overpaid but at least they are held to performance standards. If a guy doesn't perform, his next contract (if there is one) isn't going drop...he won't get a $160 million payout to leave.

This is simple: Law of Supply and Demand. The market sets the price-end of story. Like when something everybody wants i.e. is in short supply the price goes up, until supply outstrips demand.

j

brianhos · 10-30-2007, 05:21 PM

Originally Posted by cycloneworld

Like $160 million to lose the company $8 billion? Stressful...yes. Successful...no.

He tried harder than you or I ever would and deserves to be treated in the manner that he is accustomed to. Who are we to judge his paycheck, he could have 1,400 kids to pay child support on like Travis Henry.

cycloneworld · 10-30-2007, 05:22 PM

Originally Posted by jmb

This is simple: Law of Supply and Demand. The market sets the price-end of story. Like when something everybody wants i.e. is in short supply the price goes up, until supply outstrips demand.

j

Except in this case. They are paying the guy $160 to go away! There isn't a demand there. This is Supply and Don't Demand...which makes no sense.

throwittoblythe · 10-30-2007, 05:23 PM

Originally Posted by jmb

This is simple: Law of Supply and Demand. The market sets the price-end of story. Like when something everybody wants i.e. is in short supply the price goes up, until supply outstrips demand.

j

This is what Mike & Mike were discussing in reference to how much pro sports tickets are right now. Basically, they said this:

Are the prices ridiculous? Yes.
Have they alienated the average Joe such that he can't afford to take his family to games anymore? Yes.
Why do they do this? Because they keep raising the price and butts keep showing up in the seats.

They'll keep raising prices (of anything, not just tickets) until the market won't allow them to.

Cyclonepride · 10-30-2007, 05:25 PM

Originally Posted by cycloneworld

Except in this case. They are paying the guy $160 to go away! There isn't a demand there. This is Supply and Don't Demand...which makes no sense.

To get a guy that might be considered a top CEO, you are going to have to offer a good package, including a nice going away present if things don't work out.

cycloneworld · 10-30-2007, 05:27 PM

Originally Posted by Cyclonepride

To get a guy that might be considered a top CEO, you are going to have to offer a good package, including a nice going away present if things don't work out.

Understandable. But this guy came from within. He had been working there for many, many years before becoming a CEO.

It's Merrill Lynch's money, they can do whatever they want. I just don't understand why people ***** about A-Rod making $25 mill per year when huge companies are paying guys $160 million just to go away. I guess that is my point here.

travman23 · 10-30-2007, 05:28 PM

If you get a CEO job you are pretty much set for life regardless because most have golden parachute clauses that if they are ousted from their position they get paid a rediculous severance package.

In hindsight, this is an old article but look at what these charity organizations pay their CEO's: Salaries of Charity CEOs Compared - Netlore Archive

Most of you that work for large corporate companies have probably been "shook" for money for Red Cross and United Way I'm sure. I know you gotta pay the CEO something but the Salvation Army CEO makes significantly less in salary and benefits for doing the same job basically.

Cyclonepride · 10-30-2007, 05:30 PM

Originally Posted by cycloneworld

Understandable. But this guy came from within. He had been working there for many, many years before becoming a CEO.

It's Merrill Lynch's money, they can do whatever they want. I just don't understand why people ***** about A-Rod making $25 mill per year when huge companies are paying guys $160 million just to go away. I guess that is my point here.

I guess on a certain level, I have a problem with both. It's a sad reality that you can bust your butt to make $50,000 a year, and be a great worker, but if you're doing the right thing, in the right place, at the right time, you can have literally millions thrown at you whether you are worth it or not. I am sure it's like the old saying that you keep promoting people until you find something they are not competent to do.

brianhos · 10-30-2007, 05:31 PM

Originally Posted by travman23

If you get a CEO job you are pretty much set for life regardless because most have golden parachute clauses that if they are ousted from their position they get paid a rediculous severance package.

In hindsight, this is an old article but look at what these charity organizations pay their CEO's: Salaries of Charity CEOs Compared - Netlore Archive

Most of you that work for large corporate companies have probably been "shook" for money for Red Cross and United Way I'm sure. I know you gotta pay the CEO something but the Salvation Army CEO makes significantly less in salary and benefits for doing the same job basically.

Salvation army and united way management structures are way way way different.