The Gravy Train
via Yahoo: Corporate America has long been guilty of overpaying CEO’s without tying their pay to company performance. That may be about to change. Several companies have begun tying CEO compensation to stock performance. This is a good thing. If the stock goes up and shareholders make money, the CEO profits. Common sense, and unlike the currently accepted practice of paying CEO’s outrageous compensation packages when the stock is dwindling.
Currently Apple Computer’s Steve Jobs is one of the most overpaid CEO’s in corporate America. Even though he only receives $1 per year in salary, he has received perks such as a 90 million dollar jet. Recently Jobs received a restricted stock grant worth almost 75 million dollars.
Hopefully boards will begin standing up to CEO’s and demanding performance for such ridiculous rates. I don’t mind a corporate leader getting paid a lot, but I want to know that he or she will only be rewarded if the company (and hence my stock) does well.