Posted on May 29, 2008
Filed Under Business, Video Podcasts

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<embed wmode="transparent" src="http://blip.tv/scripts/flash/blipplayer.swf?autoStart=false&file=http://blip.tv/file/get/Beachwalks-BeachWalk644CEOPayRevisited981.flv%3Fsource%3D3" quality="high" width="480" height="270" name="movie" type="application/x-shockwave-flash" pluginspage="http://www.macromedia.com/go/getflashplayer"></embed> <br /> <a href="http://www.beachwalks.tv" alt="Beach Walks with Rox" title="Beach Walks with Rox">Beach Walk 644 - CEO Pay Revisited</a>

I like this concept of "marking the territory" - not like a dog, but as students of consciousness. It is so easy to get caught up in the robotic rush of repetition, day in and day out. I read in Fortune a few months ago about how AmEx has dramatically restructured its CEO pay for Kenneth Chenault. In brief, he gets a relatively low base pay, and then stock options (not restricted stock) if he meets performance criteria over an unusually long 6-year period. It's worth noting that those options are worthwhile only if the stock price is preserved; there is no guaranteed price on them. I hope other companies will begin to pull back the reins on the exorbitant CEO pay packages that have become too common. Here was my early take on CEO pay: Beach Walk 129 - Math with Rox

Hawaiian word:
Kumu hoÊ»olalelale: incentive

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Comments

One Response to “Beach Walk 644 – CEO Pay Revisited”

Jonnie on June 1st, 2008 5:19 pm

...and CEO salary is only one component of what I think is abuse. After digging around in Yahoo Finance one day, I watched a CEO buy at $19 (exercised an option) and sold at $85, netting over a couple of million when the dust settled.

I really don't know how stock options work, but they seem like a hell of deal on top of a $300k salary.

I planned to sell at $80 (thru my 401k plan) because I didn't know if it was going to see $85 â€“ I was less that a buck away from target and was actually happy.

Maybe this guy can utilize limit buys and sells; I know I cannot within my retirement plan (401k). Anyway, he made the maximum amount of money (profit) and the timing was perfect. While I'm stuck putting in a buy or sales order and praying that when it's transacted at the end of the day the stock hasn't swung wildly against my favor. Hmmmâ€¦