US CEOs Underpaid

wotsthat

Graham_Devon wrote: »

Really? So what's a better motivator?

Funny thing to say on a thread which is backing up CEO's needing more money....especially with the amount of times we've been told if you want the best you need to pay the most.

I'm very much motivated by financial incentives but I'm not earning millions. I'd imagine that if I was earning £5m and got a £50k bonus I might not even be bothered to tell my wife. I'm earning much less than that and had three bonuses last year - two of them went straight in the pension without a mention.

Years ago I found getting a day release HNC paid for quite a motivator and funding (but no time) to get a degree. These days a nicer company car, a generous travel budget, no hassle if I want to disappear mid-afternoon on a Friday, a 'gold' air miles card which gets me and a guest into the business lounge before any pleasure trip for a bottle of Champagne each. Status matters - for the same money I'd rather work for Sainsburys vs Costcutter or BMW vs Ford.

The odd thank you goes a long way too.

Cash is king but good employers will try and find motivators other than direct cash transfers because returns are diminishing and it just becomes an auction.

Generali

cells wrote: »

Maybe shareholders pay theor CEOs a LOT of money not for more profit but to limit the chances of bribes or anything which coupd make the company worthless

I've wondered what checks if any are in place for a CEO signing away the company assets on pennies on the pound. Could for example the CEO of BP sell its oil fields or rigs or whatever for 1/10 the value?

I can't see how it would be possible for the CEO of BP to sell an oil rig or two: it would be very weird for the CEO to be involved in that detail and someone up the chain to CFO should refuse to sign off on the deal.

Selling a large chunk of the company would require shareholder approval.

Don't forget that a CEO owes a fiduciary duty to shareholders and risks a prison sentence for, for example, selling a bunch of oil rigs to a mate on the cheap.

Graham_Devon

wotsthat wrote: »

All employers have to consider the risk of dishonesty or the cost of a staff member leaving or being poached and remunerate accordingly.

You seem to be implying that the less you pay a CEO, the higher the risk of them being dishonest and, I can only imagine, committing fraud within the company?

So by that implication, it kind of suggests CEO's are a bit dodgy? The more you pay them though, the less dodgy they become?

Many of the reasons CEO's "need" to have higher pay don't paint CEO's in the best of light - do they? Especially if the starting point it "they may eb dodgy, so we'll pay them more in order that we hope they will be good boys and girls".

It was you who was suggesting money isn't the biggest motivator. You then go on to suggest you need to pay them more in order to keep them. Which is it? They need more so they don't go elsewhere, or "other motivators are worth more than money" - only you seem to be saying both dependant upon who you reply to.

wotsthat

Graham_Devon wrote: »

You seem to be implying that the less you pay a CEO, the higher the risk of them being dishonest and, I can only imagine, committing fraud within the company?

So by that implication, it kind of suggests CEO's are a bit dodgy? The more you pay them though, the less dodgy they become?

Many of the reasons CEO's "need" to have higher pay don't paint CEO's in the best of light - do they? Especially if the starting point it "they may eb dodgy, so we'll pay them more in order that we hope they will be good boys and girls".

It was you who was suggesting money isn't the biggest motivator. You then go on to suggest you need to pay them more in order to keep them. Which is it? They need more so they don't go elsewhere, or "other motivators are worth more than money" - only you seem to be saying both dependant upon who you reply to.

I'd assume any employee is less likely to diddle their employer if they feel valued but if you want to turn that into 'they must be inherently dodgy' that's up to you.

I didn't say money isn't the biggest motivator. In fact I said cash is king but, at a certain level, increased cash won't lead to proportional increase in performance. Once the curve shallows a wise employer will look for other means to attract and retain talent.