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patcat88

join:2002-04-05
Jamaica, NY
kudos:1
reply to Rogue Wolf

Re: Pay for performance is just for the little fish, eh?

said by Rogue Wolf:

Yes, yes, a thousand times yes. Boards need to think beyond the next quarterly report and set up a beneficial long-term strategy for the company for which they are responsible. Getting a 'big name guy' in the CEO's chair should matter much less than getting someone who can be trusted to grow the company responsibly. Millions of people go to work every day knowing that their compensation and continued employment depend on how well they execute their responsibilities... why should CEOs be any different?
Boards don't think. They show up reluctantly once or twice a year for a few hours since they are paid little if anything. They never read in deep, or have someone from the corp explain to them the proposals by phone the day before to get rubberstamped the next day. All the members have day jobs at other fortune 500s or in govt. Boards only exist to recruit investors and job placement obligations for their college frat/secret society buddies.


FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5

said by patcat88:

They show up reluctantly once or twice a year
quote:
Most boards meet much more than that- often once or twice a month in person and more frequently by phone
for a few hours since they are paid little if anything
quote:
I wish that were true. Benefits for board members often run to tens of thousands of dollars per mtg
. They never read in deep, or have someone from the corp explain to them the proposals by phone the day before to get rubberstamped the next day.
quote:
unfortunately for many board members that is true
All the members have day jobs at other fortune 500s or in govt.
quote:
Some do. But many are retired CEOs, CFOs, etc and most boards now have members from academia & community organizations
Boards only exist to recruit investors and job placement obligations for their college frat/secret society buddies.
quote:
some truth in that statement, but they do have fiduciary responsibilities that many take seriously. They can be sued if they don't act in a legal manner

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moonpuppy

join:2000-08-21
Glen Burnie, MD
reply to patcat88

said by patcat88:

Boards don't think. They show up reluctantly once or twice a year for a few hours since they are paid little if anything. They never read in deep, or have someone from the corp explain to them the proposals by phone the day before to get rubberstamped the next day. All the members have day jobs at other fortune 500s or in govt. Boards only exist to recruit investors and job placement obligations for their college frat/secret society buddies.
Actually, they do think...about each other.

The members of the boards often sit on multiple ones and many members are CEOs of their own companies. So while one guys gets his "compensation" approved at one meeting, he approves the compensation of another fellow member at another meeting. Most look for short term payoffs instead of long term viability and that is why companies really need to start treating CEOs as owners; get paid when you do well.