Read the article "Ten Ways to Restore Investor Confidence in Compensation" in the Wall Street Journal, April 9, 2007.
By 7:00AM on Thursday, October 4, please post your reaction to any one of the 10 tips the article makes to produce executive pay plans acceptable to disgruntled stockholders. Label your entry: My reaction to Tip #_- Your first and last name.
Research tip: In this same edition of the Wall Street Journal you might find information on the 2006 compensation package of the CEO for your group case study. See article, "The Boss's Pay".
Subscribe to:
Post Comments (Atom)
2 comments:
My Reaction to Tip #6- Evan Gaffny
I think the idea of cutting perquisites to cut costs is a good idea. Upper level managers such as CEO's,CFO's, and COO's all make enough money, along with plenty of stock within the company. They do not need the company to pay for their club memberships, that is a leisure expense and the company is not responsible to pay that. Managers yearly salaries, benefits, and stock options are enough to live a comfortable life, companies should not be footing the bill for leisure time activities.
My reaction Tip #4-Nicole Damboise
I feel that more companies should take the initiative of the concept "fire for cause". A lot of these businesses are losing money in a result of "firing for failure". For example, a costly output of three CEO's resulted in millions of dollars. I agree that a business should state in contract, like Walt Disney, that if the CEO deny's to be investigated or refuse to give a testimony then that is a legitimate reason to fire a CEO. Since this was stated in contract the company can save those millions of dollars for outputing CEO'S.
Post a Comment