(left-click to enlarge)Well, I guess there weren't only a few of us wondering how stupid Board of Directors (and shareholders) can be when it comes to defining CEO pay structures.
This article in the Star today (June 5th), by Roger Martin, supports the need for more realistic approaches - pay for performance (IBMers, sound familiar?) - and that should be solely real market performance (such as market share, profit, book equity return.
In my opinion, revenue growth is questionable unless tied directly to profit.
Any company should be cognisant how it looks if it is failing and their CEO is making a killing.
The bottom line should be:
1. low base salary
2. bonuses completely tied to the above business measures (by outside accounting firm only)
3. no revenue/profit - zero bonus compensation.
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