Re:Effect of economic crisis on America’s small businesses [...
by WalterBright on Saturday March 21, 2020 @09:50PM
(#22651978)
The board members operate only at the pleasure of the shareholders, so the shareholders ultimately determine CEO pay and are the ones who are paying it. Shareholders can (and often do) sell their stock the moment they don't like what the board and CEO are doing.
This is not true for publicly traded companies - where the board (consisting mostly executives at other companies) determines compensation on behalf of the owners