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A comment on Britain Looks to Address Inequality with Executive Pay Measures. Parent comment

Re:Britain Looks to Address Inequality with Executive Pay Me... by oh_sigh on Wednesday August 30, 2017 @04:07PM (#15135532)
Then why do big businesses pay out the big bucks to CEOs?

If it is basically CEOs and their board conning money out of the company, won't companies that don't engage in that kind of behavior have a competitive advantage and eventually overtake the poorly led companies?

[ Parent | on HN ]
Re:Britain Looks to Address Inequality with Executive Pay Me... by valuearb on Wednesday August 30, 2017 @04:15PM (#15135594)
It's basically conning, and yes it hurts the companies but for public companies it doesn't matter because that's the incentives of the board/CEO are out of whack. Shareholders aren't allowed to elect boards in public companies so they become interlocked with insiders.

And in reality a good CEO is worth an enormous amount of money so the actual amount that is earned and the excess that is grift is difficult to measure.

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