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A comment on 90 Cents of Every 'Pay-For-Performance' Dollar for CEOs Are Paid for Luck. Parent comment

Re:90 Cents of Every 'Pay-For-Performance' Dollar for CEOs A... by fsloth on Friday September 30, 2016 @12:46PM (#12613585)
But the problem is from point of view of compensation fairness that was the CEO who got paid 10M 2.5% better than the less paid CEO or was he just lucky (great personnel, good market, etc). A CEO cannot function without a company.

Yes, a bad CEO can wreck a company really fast. I would claim there are no superhuman CEO:s who can outperform a market (there are CEO:s who have disrupted markets, sure but that is an exception and not a rule) by themselves - but, there are CEO:s who can wreck companies with a single misplaced stroke.

Are they paid not to screw up? The main problem of high-comp CEO:s IMO is that this view of a lord over his domain diminishes the value of the other personnel in the company. Teamwork and all that.

If there are really good statistics then yes, a single person can make a huge difference ala moneyball. But does an average Fortune 500 have such statistics?

[ Parent | on HN ]
Re:90 Cents of Every 'Pay-For-Performance' Dollar for CEOs A... by ssalazar on Friday September 30, 2016 @03:33PM (#12614707)
> Are they paid not to screw up?

Thats an interesting insight; there isn't anything inherently wrong with this. DevOps and security are two critical technical roles that work similarly: if they're doing their job right, the machine continues to run perfectly.

[ Parent | on HN ]