Are CEOs overpaid?
Question:
No matter which formula you use, Yahoo CEO Semel’s total illustrates one of the most pronounced recent trends in executive pay: Salary and cash bonuses account for only a small portion of total compensation.
Almost all of his pay — $71.4 million — came as stock grants and stock options, according to AP calculations. His salary totaled only $250,001.
But if it's stock, he can't sell it, righ? So he is not actually overpaid?
Answer:
OF COURSE
He can sell it. It doesn't look good on the company though and expect prices to fall when/if he does.
Some CEO's are over paid others are underpaid and others are right on the money.
I would say that delta's CEO who brought them out of bankruptcy is probably underpaid.
He was taking a smaller paycheck home then other delta executives.
Pete rickets, the man that started Ameritrade, I would say he was over paid at least part of the time. He was taking home half a million bonus's while laying off employees. funny how that is.
No.
If the CEO is positively contributing to the growth of the company and the investors are seeing an increase in their investment then the CEO is not overpaid. In spite of the fact that they are making huge multiples of what their average employees get remember that it is because of their work that the company is successful and those employees have jobs
If however the CEO is not growing the company and the investors ar eseeing a decline in their net worth, then he/she should be removed forthwith and replaced with someone more competent.
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