Big rewards for failure among American CEOs
Robert Nardelli’s rich compensation for
poor performance at Home Depot has long been cited by shareholder activists as a
prime example of what they view as excessive executive pay.
Robert Nardelli’s rich compensation for poor performance at Home
Depot has long been cited by shareholder activists as a prime example of what
they view as excessive executive pay. Some union members have dressed in chicken
outfits to protest the board’s reluctance to clip Nardelli’s
wings.
Now, all their outrage has won them Nardelli’s removal — and won him at least a $210 million golden handshake on his way out the door.
Nardelli’s compensation may have a prominent place in the pantheon of paying for failure, critics said, but his arrangement is by no means unique.
Across corporate America, chief executives have been walking away with lavish riches even when their companies fail to perform, according to an analysis by the Corporate Library.
“You can call them pay-for-failure packages,” said Jesse Fried, a law professor at the University of California at Berkeley, who has been critical of excessive compensation packages. “You get what you pay for.”
Lots of detail, many examples, in the article.
Some nations, some corporations, write equitable proportion into wage scales for corporate governance. The Good Old Boy mentality that rules our economy and politics would rather support a license to steal.
Now, all their outrage has won them Nardelli’s removal — and won him at least a $210 million golden handshake on his way out the door.
Nardelli’s compensation may have a prominent place in the pantheon of paying for failure, critics said, but his arrangement is by no means unique.
Across corporate America, chief executives have been walking away with lavish riches even when their companies fail to perform, according to an analysis by the Corporate Library.
“You can call them pay-for-failure packages,” said Jesse Fried, a law professor at the University of California at Berkeley, who has been critical of excessive compensation packages. “You get what you pay for.”
Lots of detail, many examples, in the article.
Some nations, some corporations, write equitable proportion into wage scales for corporate governance. The Good Old Boy mentality that rules our economy and politics would rather support a license to steal.
Posted: Thu - January 4, 2007 at 09:27 AM