Compensation
So over the weekend I found myself chatting with a couple of people about the overcompensation of CEOs. And lo and behold came this article today, which, just in case you missed it:
CEO of Home Depot gets paid a lot of money to resign.
If you do the math, you’ll see that Mr. Nardelli earned $75 million per year, which is more than your average Florida lottery payout, and somewhat more than what Johnny Depp reputedly pocketed for Pirates II and III, although I assume Depp’s contract includes some residual payments. Moving on. During this same period, Home Depot posted profits, but also lost market share to Lowes and saw its stock price sink, and incidentally, although this bit isn't highlighted by the Washington Post, started stocking lower quality house plants.
Now, since Nardelli continued to post profits, I'm inclined to give the guy a bit of a break. The Home Depot board, focused on stock price, didn't, but apparently still felt impelled to pay him $75 million per year for doing a just-ok job.
This either illustrates multiple problems with the system, or multiple problems with my ability to take advantage of the system, or both.
CEO of Home Depot gets paid a lot of money to resign.
If you do the math, you’ll see that Mr. Nardelli earned $75 million per year, which is more than your average Florida lottery payout, and somewhat more than what Johnny Depp reputedly pocketed for Pirates II and III, although I assume Depp’s contract includes some residual payments. Moving on. During this same period, Home Depot posted profits, but also lost market share to Lowes and saw its stock price sink, and incidentally, although this bit isn't highlighted by the Washington Post, started stocking lower quality house plants.
Now, since Nardelli continued to post profits, I'm inclined to give the guy a bit of a break. The Home Depot board, focused on stock price, didn't, but apparently still felt impelled to pay him $75 million per year for doing a just-ok job.
This either illustrates multiple problems with the system, or multiple problems with my ability to take advantage of the system, or both.