Quote:
Originally Posted by Platapus
It is my understanding that CEO salaries are set by either the board of directors or the stockholders. If either group chooses, and it is their choice to pay the CEO that much, that's their decision.
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A big problem is most of the Boards of Directors are populated with CEOs and other high-ranking executives of other corporations and the whole salary/benefits package determination process has become a mutual back-scratching situation where board members will vote for very high compensation with the expectation CEOs on their corporate boards will return the 'favor'...
The one thing I find quite puzzling is how the shareholders don't seem to take into account how much the overloaded salary/compensation packages are eating into the shareholders own return on investment; in some cases, with the very largest corporations, scaling back the cost of the packages would yield a noticeable per share return; it is almost like they are giving tacit acceptance of their pockets being picked...
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