GREED IS GOOD

[TIME FOR CHANGE]

As the American economy slowed to a crawl and stockholders watched their money evaporate, CEO pay still chugged to yet more dizzying heights last year

http://apnews.excite.com/article/20080615/D91ALETG0.html

 

[Hopeful]

As the American economy slowed to a crawl and stockholders watched their money evaporate, CEO pay still chugged to yet more dizzying heights last year

http://apnews.excite.com/article/20080615/D91ALETG0.html

I would like to reply to this before the pro executive supporters like eolesen defend them.

It has been defended here and will continue to be is that CEO pay is determined by the board of directors.

But the defenders and supporters always forget the part that the board of directors are made up of other company CEO's and presidents who take of each other in terms of inflated pay and benefits. This is the old boys network who artificially create a "market demand" situation for these greedy CEO's.

 

[eolesen]

Not at all different from the contract envy exhibited everytime someone here compares their AA contract with that of UPS, ALK, FDX, LUV, etc...

 

[limit]

Not at all different from the contract envy exhibited everytime someone here compares their AA contract with that of UPS, ALK, FDX, LUV, etc...

Bull!
How can you even try to make that comparison?
Even if you are right about the envy,how exactly does the contract employees comparing their contracts ( envy or not),
even comes close to CEOs actually setting their own contract rates ?

 

[eolesen]

Another false pretense... CEO's don't set their own rates. That's done by the compensation committee, which is usually made up exclusively of outside directors. The fact that they might be in similar positions doesn't mean they're looking to "take care of each other" because at the end of the day, their job is to spend as little as possible to get the right person to take the job.

 

[Bob Owens]

Another false pretense... CEO's don't set their own rates. That's done by the compensation committee, which is usually made up exclusively of outside directors. The fact that they might be in similar positions doesn't mean they're looking to "take care of each other" because at the end of the day, their job is to spend as little as possible to get the right person to take the job.

Thats a load of crap and you know it. The fact is that when it comes to setting executive pay both sides of the table have it in their best interests to set the rate ever higher because for the most part everyone in the equation stands to gain when it goes up. So its not like they are "taking care of each other" they are taking care of themselves.

 

[Hopeful]

Not at all different from the contract envy exhibited everytime someone here compares their AA contract with that of UPS, ALK, FDX, LUV, etc...

Really? The last time I checked, no airline employee has his or her salary set by a committee of their peers like a CEO does.

These boards of directors inflate their own worth thus creating the so called "market demand" for their exclusive club.

 

[limit]

Another false pretense... CEO's don't set their own rates. That's done by the compensation committee, which is usually made up exclusively of outside directors. The fact that they might be in similar positions doesn't mean they're looking to "take care of each other" because at the end of the day, their job is to spend as little as possible to get the right person to take the job.

The false pretense is you looking in the mirror.

At the end of the day "those in similar positions" manage to take care of each other regardless of your bs.

 

[Winglet]

What a load of crap. These CEOs and big shots are all in cahoots together. They ALL scratch each other's backs and stuff each other's pockets. And it doesn't really matter how incompetent the job they do. They get millions and millions of dollars of compensation and that number is only going up.

 

[eolesen]

Really? The last time I checked, no airline employee has his or her salary set by a committee of their peers like a CEO does.

Really? Then what exactly is the purpose of the CBA process?

"Scratch your back" propaganda makes for good rhetoric, but that's not how it works in the real world. Go ahead and believe it if you want, but the only thing factual about that myth is it's bound to pump your blood pressure up better than a bottle of Viagra...

 

[cooper43]

Another false pretense... CEO's don't set their own rates. That's done by the compensation committee, which is usually made up exclusively of outside directors. The fact that they might be in similar positions doesn't mean they're looking to "take care of each other" because at the end of the day, their job is to spend as little as possible to get the right person to take the job.

WOW I'm not an AA employee but you really are niave.

 

[American Air Surf]

Really? Then what exactly is the purpose of the CBA process?

"Scratch your back" propaganda makes for good rhetoric, but that's not how it works in the real world. Go ahead and believe it if you want, but the only thing factual about that myth is it's bound to pump your blood pressure up better than a bottle of Viagra...

The problem Mr. Eolesen, is the cards are stacked agains the Unons, during collective bargaining process. Due to the simple fact we are under the Railway Labor Act, and a bunch of dumbass, mediators at the NMB. By the time the Unions could STRIKE. We are subject to a PEB. All the while the company has had years to line up Strike replacement workers, during this out/dated negotiating process. Additionally, due to the good of the country, and it's transportation system, we have no leverage in this cut/throat industry. The people that do the work, are being raped. So we can provide cheap tickets, F**k that !

And..., it is one big club at the top. They all vote, themsleves over-the-top pay packages, because, they themselves are Judge/Jury, and they make the laws-

 

[FWAAA]

WOW I'm not an AA employee but you really are niave.

Well, if you're right and eolesen is wrong, then why don't execs make even more? Why is Arpey paid less than many other CEOs? If my comp was set by a compensation committee made up of my back-scratching friends, I'd make sure I was paid more straight salary and less variable comp, right?

 

[eolesen]

FWAAA, you're forgetting that AA cooks the books... He's obviously getting paid more under the table...

 

[FWAAA]

FWAAA, you're forgetting that AA cooks the books... He's obviously getting paid more under the table...

D'Oh! 😀

I was too busy looking for the "Enron" labeled trump card. Sort of a Godwin's law-like last ditch resort when discussing public company finances.