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Beach Walk 644 - CEO Pay Revisited

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Uploaded by on Jun 4, 2008

I like this concept of "marking the territory" - not like a dog, but as students of consciousness. I read in Fortune a few months ago about how AmEx has dramatically restructured its CEO pay for Kenneth Chenault. I hope other companies will begin to pull back the reins on the exorbitant CEO pay packages that have become too common. See my first take on CEO Pay in Beach Walk #129 - Math with Rox.

Hawaiian word:
Kumu hoʻolalelale: incentive

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  • I'm sure you have already heard this, but I think it is often forgot that companies are not stupid. When they offer CEO's high salaries which are independent of job performance, they know what they are doing. This could be a tool to recruit a proven veteran, or to beat the offer of their competition. Or perhaps the company is giving a relatively small (albeit nominally large) guaranteed award as opposed to a larger performance based reward. Companies think hard about big money decisions.

  • American Express sucks, I'm not paying 2.5% for the privelage!

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