Comments on: Academics Need Not Apply

By: Aliza

Aliza — Fri, 26 Jun 2009 12:26:24 +0000

the responsibilities of CEO also cover up all these issues (is they understand). but their negligence can’t be compensated in any case either this one or else.
70-640 exam

By: StevenAttewell

StevenAttewell — Wed, 24 Jun 2009 20:00:16 +0000

JHE - but the free market isn’t taking care of it. Many studies have shown that quite often compensation increases as performance declines, thanks to the pre-eminance of “golden parachutes.”

And how exactly is the free market supposed to deal with it, given the manifest incapacity of shareholders to shape executive compensation?

By: Jock Bowden

Jock Bowden — Wed, 24 Jun 2009 03:31:12 +0000

I have no problem with this so long as the reverse courtesy is paid and corporate executives do not apply for senior university posts.

By: Map Maker

Map Maker — Wed, 24 Jun 2009 03:19:04 +0000

Begs the question why anyone from the public sector or a professor sits on those boards anyway. And I am looking at you Morton!

By: jhe

jhe — Wed, 24 Jun 2009 00:42:10 +0000

The free market, like the ecosystem is taking care of it. The model here is the host/parasite model. Parasites can be very successful without conferring any superior fitness to their host.

By: Barry

Barry — Wed, 24 Jun 2009 00:21:35 +0000

Well, you have to understand, a well-compensated CEO will not be worrying about his or her personal finances when deciding on the proper compensation for board members :)

By: nick s

nick s — Tue, 23 Jun 2009 22:20:17 +0000

The other rule, as Steve LaBonne hinted, is to make sure that the other members of the remuneration committee are executives whose cash and prizes will be determined by a similar committee. And thus the circlejerk perpetuates itself.

By: Tim Wilkinson

Tim Wilkinson — Tue, 23 Jun 2009 22:03:06 +0000

‘Compensation’!

By: rea

rea — Tue, 23 Jun 2009 20:46:31 +0000

Never, never, let tghe tooth fairy committee be chaired by someone with more money or more teeth thanyou . . .

By: Steve LaBonne

Steve LaBonne — Tue, 23 Jun 2009 20:38:21 +0000

But- but- all this time I’ve been solemnly assured that executive compensation is determined by “the market”, not by insider logrolling! Jeez, next you’ll be telling us the tooth fairy isn’t real.

By: roac

roac — Tue, 23 Jun 2009 20:35:37 +0000

I once read a book of practical, not to say cynical, advice for young Protestant clergymen by a veteran of the trade (it was long enough ago that the audience was presumed to be exclusively male). I think the title was How to Become a Bishop Without Being Religious. It contained exactly this advice. Specifically, the author said: Never, never let anyone on the Compensation Committee who does not make a lot more money than the most you can possibly imagine yourself being paid; because there is no one alive who thinks any minster should make more than he does.

(To avoid leaving a wrong impression: I do not know why I read this book. I never ever wanted to be a minister, then, before or later. If I had, the book might have cured me. It was a good read, though.)