greatest american heroes

[kimba1]

http://articles.moneycentral.msn.com/Investing/Forbes/BadCEOsWhoWalkedAwayRich.aspx

actually the title is not a joke
remember these are men were able to get massive amount of money totally not due to performance.
in watercooler talks people admire this
this shows great ability
but the question is
are there incentives for CEO`s to do a good job since they still get big payouts despite performance.
I know alot of people in business and pretty much none of them truely care how well their company does as long as they get paid.
so most likey we`re gonna see alot more folks on that list.

[Plane]

CEOs are hired by the owners of th comanys  , bad news like this is worst on them.

When a CEO has the rock star reputation that dazzles the owners too much , they pay too much.

But if a CEO actualy makes a lot of good diffrence to a company , perhaps the diffrence between pofit and loss, he is worth quite a lot. 

[kimba1]

this reminds of football with those huge signing bonus
micheal vick
except football pays less

[Plane]

this reminds of football with those huge signing bonus
micheal vick
except football pays less

It is very simular , a quarterback that makes the diffrence between a winning season or a looseing one makes millions more diffrence to the owners than his pay.

And one that dissapoints ?

Well that is diffrent , a disapointing player gets no new contract , and dropped like a hot rock if possible.
A CEO has enough clout to negotiate the terms of his leaving ,even if he was disapointing.

[kimba1]

that`s the rub
how does one hire a star perfgormer if he`s still gonna get money either way.
I understand the company risk losing him if they don`t agree to the payout.
but that`s such a costly gamble

I wonder are we at a turning point where this practice (large severence pay) is waning?

I also wonder is this thought of as good business
I wasn`t kidding when I said those men are admired.
getting millions for doing crappy work is true talent.
I`ll even go as far to ask will these men  get hired because of this?

[Plane]

I would't expect the ownership , the board of directors , to be so stupid that they hire someone who promises to reduce the value of their holding.

But they are human, so stupid is bound to happen now and then.

On the other side , if you were resonsible for hireing a CEO for a ver large company , would you hire a guy right out of school and pay him small?

The prestige and rep of the CEO is a non tangible value for the comany you might feel obliged to hire someone famous and pay him an amount that seems high for the sake of appearances.

These appearances have a real effect on stock price , so you want the choice to look good .

[kimba1]

don`t forget the networking factor

I worked in a print company and the owner hired a old schoolmate who had sterling background in sales to head the sales division.
Lets just say that company is no more.
I have a impression this is not a rare occurance.

[The_Professor]

this reminds of football with those huge signing bonus
micheal vick
except football pays less

Good point except that baseball and basketball stars get paid MUCH MUCH MORE...

[kimba1]

do the new players now ask for no strings attach signing bonus?
it looks unpopular nowadays