CEO OverCompensation

Ryan has a nice graph (scroll down if blogspot doesn't take you there directly) on the change in CEO pay per dollar of net profit since 1960. It is five times higher than it used to be. Now, I have no problem with CEOs making tons of money if they do a fantastic job. If you can rack up stock price increases of 20% or more year after year while growing revenues, improving margins, and not getting into any legal trouble, I think you deserve to be rewarded for that. But, only a handful of CEOs fit that bill. Ryan's comment at the end of his post it so true.

The biggest crime is how richly compensated the bad CEOs are.

Exactly. I don't know why shareholders put up with this.

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