Ziay!

florida flogger

If the stock holders of big corporations own a significant amount of the corporation, why don't they have more of a say regarding the salary of a CEO? CEO's IMHO salaries should be tied to the performance of the corporation and to the gains and/or losses of the company's stock.

maitreg2

That's called the free market. What do you know about running a $10 billion company? How many people do you think could run a $10 billion company, maintain current revenue and profitability, and even devise strategies for improving profitability?

It's the law of supply and demand. Very few individuals know how to run big companies, so the ones that are around get big salaries.

Try this. Offer your services as a CEO to the board of a giant public company free of charge. Would they accept your offer? Even for free? Why not?

It may be your opinion to tie CEO salaries to profit or stock performance, but that's not likely the opinion of most CEO's, is it? When they draw up the contracts, the CEO's would refuse to sign such things because it's not fair. Any unplanned catastrophic event that destroys profits or stock performance will destroy their personal salaries. Why would they sign a contract like that when company B will give them $100 million/yr regardless of short-term profit or stock performance?

mohammadwaqar

first of all this question shows ur creativity and the answer is if we look positively that all the people of top management usually have prefrence then others because if they engage in earning for themselves they should not have a proper focus on their work and that is y ceo,chairman etc usually have granted failities by the mutual undstanding of top and rest of the managemnt.