24 Nov 13
Originally posted by KazetNagorraAnd if a CEO gets deferred compensation is stocks or options it could fit the same ratio and not really change anything.
Most small business owners tend to reinvest profits in their business. Very few of them will exceed the 1:12 ratio.
24 Nov 13
Originally posted by kmax87The whole world won't adopt something so foolish. CEO are worth more than 12 times low level workers and should be paid as such.
With the global economy fully established and globalization now fully entrenched at some point where can business run and hide if a 1:12 ratio were instituted. In the long run do you want to see American workers paid that of the Indians or the Chinese?
24 Nov 13
Originally posted by joe beyserJeffrey Keith "Jeff" Skilling (born November 25, 1953) is the former CEO of the Enron Corporation, headquartered in Houston, Texas. In 2006 he was convicted of multiple federal felony charges relating to Enron's financial collapse, and is currently serving 14 years of a 24-year, four-month prison sentence at the Federal Correctional Institution (FCI) – Englewood in Littleton, Colorado.
Werent those they guys that went down in an airplane in the Andes Mountains in Chile?
Calisto Tanzi (Collecchio, November 17, 1938) is an Italian businessman notorious for embezzling an estimated eight-hundred million euros from Italian company Parmalat, founded by him, resulting in a great loss for the company.[1] Tanzi was the founder of Parmalat and its CEO, at the time. Tanzi founded Parmalat in 1961, after dropping out of college. Parmalat collapsed in 2003 with a 14bn euro ($20bn; £13bn) hole in its accounts in what remains Europe's biggest bankruptcy.
Nokia replaced its chief executive, Olli-Pekka Kallasvuo (OPK),with Stephen Elop, the head of Microsoft’s business unit, in a bid to “accelerate the company’s renewal” after an ugly 70 percent decline in market value over the past few years. The move was a long time coming.
24 Nov 13
Originally posted by KazetNagorraI would have thought that deferred stock options prove a CEO's worth. If the company tanks under their guidance (or lack there of) then at least their remuneration is commensurate with their skill. Not sure why at a particular year's stock level the deferred option couldn't still be based on a 1 in 12 ratio?
That is another risk of such a measure. In any case, Swiss voters rejected the proposal.
25 Nov 13
Originally posted by kmax87We could limit the value of stock options, but why should we. Let the market decide what people should earn.
I would have thought that deferred stock options prove a CEO's worth. If the company tanks under their guidance (or lack there of) then at least their remuneration is commensurate with their skill. Not sure why at a particular year's stock level the deferred option couldn't still be based on a 1 in 12 ratio?