Wednesday 11 November 2009
IG CEO Robert Benmosche Ready To Quit Over Pay Constraints
I think you are perhaps too simplistic about a complex area. People resent the big bonuses that sports stars get for hitting a ball, until you explain that the team owners are making millions from the TV coverage - then folks agree that the players ought to get a fair piece of the pie. As Walter Cronkite said when he got the first million-dollar newscaster contract: Am I worth it? Compared to a school teacher, no; but compared to a baseball player, you bet!What folks do not understand is what talents are actually being paid for, why executive compensation is such a large share of the profits and why they do not seem to sink in relative measure when the companies do badly. They also have been led to distrust the term "bonus" in its own right. If these exec's could swallow their pride and call their performance-contingent compensation "commission", much of the animosity might disappear.
Indeed, if executives were paid commission on profits, both shareholders and the general public might be a good deal happier - especially if commissions went negative when the executives showed losses.
# posted by Had It in Holland Park @ 06:39 
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