Yep, that is what I thought. Max is more stable than phenom. He has not come unglued and began to speak of apartheid. Usually it only takes phenom a few posts before he reverts.
I am the CEO of "X"...... What do you mean Golden Parachutes are inconsistent with Free Market?? As CEO, I have to recruit the Best Talent. If I don't offer that, others will pilfer the Best Talent, leaving me at a competitive disadvantage! Who are YOU to tell me not to do the best for my company? Who are YOU to tell me how tO best run this company?? Your interference smacks of socialism - dictating and determining what the free market allows. Damn socialist... (See how easy it is to put you on the other side of the argument? )
I think you were trying to argue that companies offer prospective CEO's golden parachutes as part of their competitive (they hope) compensation package... ?
Not really, infact not at all, this may be one of the most ridiculous things i have ever heard. Any one who insists on giving an employee a golden parachute in order to get them to sign on deserves to go bankrupt. Think about it, if you run a business are you really going to try to attract a guy by saying "yeah well if you fuck up or bankrupt my business i will give you a shit load of money." The only reason golden parachutes exist is because of the "good old boys club" on wallstreet, no business owner in their right mind with their own skin in the game would sign someone on with terms saying that if the employee puts them out of business they will get paid a huge bonus. It is one of the most fucking ludicrous concepts i can think of, and it is a clear example of corporate socialism.
Maybe. But let's be imaginative for a moment.... Let's say that there is a concentration in an industry with few big players..... Then, I will hire a "compensation consultant" (need to keep this at arm's length...) He will do a study that executives in the other companies in the concentrated industry are paying their execs more. I need to up my offerings (including my own compensation). He can go around to the others and say the same thing, creating a nice little upward compensation spiral...... He gets paid nicely for his "analysis", the rest of us get to feed more at the trough. Win-Win-Win for me, the few other big players in the industry, and the consultant. Ridiculous? Maybe. Maybe not. How's exec compensation vs. the peons lately?
You should listen to some CEO interviews. The argument that they "need to be competitive" with compensation is pretty standard fare to justify payouts and bonuses, even after the company has been clobbered. Golden Parachutes are relatively standard too. "Competitive" is usually associated with "Capitalist". At least, that's the hope....
Paying a person an exorbitant salary to run your business is one thing, paying a person an exorbitant salary because they bankrupted your company is a totally different story.
And how much salary and bonus should someone get if the company he runs is leveraged 40:1 with mortgage derivatives and takes down the US economy with him? Doesn't matter does it? Because if I am Mr Free-Market Socialist CEO, the Golden Parachutes and bonuses are staying. Don't get any ideas of trying to "regulate" me either, because it's those socialistic ideas that are ruining the economy!