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Old 02-23-2015, 09:52 AM
 
1,883 posts, read 2,828,140 times
Reputation: 1305

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The more money you have in a company as a % shareholder, the louder your words become, I don't think the op needs to worry about that anytime soon

If you are worrying about CEO comp, then buy BRK-B shares, CEO Buffett pays himself $100k, no dividends, re-invest everything it earns, and minimum on GA costs, corporate office has less than 20 people, you can't get more efficient than this, that guy still eats at Burger King for god sake.

The words on wall street is if you pay a good CEO 1% more to gain 10% on the returns, it's well worth it, that 1% could mean $10 million dollars.
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Old 02-23-2015, 10:10 AM
 
Location: Denver, CO
1,421 posts, read 1,637,077 times
Reputation: 1751
What I think is absurd is the idea that companies need to grow YoY it's seen as a "failure"

If a company makes $4.2 billion in profit in 2012 but only $4.15 in 2013, it's "a bad sign" -- forgetting the fact that they still made 4.15 billion....


As far as CEO salary, as others have mentioned, it's pennies per stockholder, if that.
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Old 02-23-2015, 12:15 PM
 
26,191 posts, read 21,591,383 times
Reputation: 22772
People don't understand the law of large numbers. This was a funny discussion when oil was trading above 140 and people were calling for them to cut exec comp


If you don't like the comp paid to a CEO of a company your own do something. If you can't get it done your fellow owners don't agree with you
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Old 02-24-2015, 05:01 PM
 
Location: Under a bridge
2,420 posts, read 3,850,179 times
Reputation: 2496
CEO Muhtar Kent over at Coke doesn't like this thread one bit.
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Old 02-24-2015, 06:47 PM
 
24,407 posts, read 26,964,842 times
Reputation: 19977
The last thing I would want to do if I'm invested in a successful company and stock is throw out the CEO because of the bonus or pay raise awarded by the board of directors. No thanks!

Now if the company and stock are going downhill and he/she still gets a new bonus or pay raise, then I would like to see it happen, but in all honestly, I could care less because it only takes one click to sell it and move on.
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Old 02-24-2015, 06:50 PM
 
Location: NJ
31,771 posts, read 40,705,240 times
Reputation: 24590
if the ceo gets a pay cut, am I really going to see any more return because of it?
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Old 02-24-2015, 07:02 PM
 
24,407 posts, read 26,964,842 times
Reputation: 19977
Quote:
Originally Posted by CaptainNJ View Post
if the ceo gets a pay cut, am I really going to see any more return because of it?
Exactly, if anything he might entertain an offer from a competitor and switch ships, especially if he/she was doing a good job.
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Old 02-25-2015, 03:13 AM
 
31,683 posts, read 41,045,989 times
Reputation: 14434
Shareholder value is the goal. If the CEO enhances it and with salary results in a higher net value. Pay them!
Apple without Steve Jobs or Tim Cook is worth? I suspect Apple shareholders are glad they don't know.
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Old 02-25-2015, 03:28 AM
 
106,675 posts, read 108,856,202 times
Reputation: 80164
never confuse good companies with good stocks. personally i want to make money , if high ceo pay does the trick ,great.

if not i am off to another company.

if i buy individual stocks i do not really care about buying a buisness as much as i buy it as a trading vehicle. warren buffett i am not. good companies can make dull stocks many times and just never pay off because of lack of coverage by analysts. ..
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Old 02-25-2015, 06:06 AM
 
Location: Finland
1,398 posts, read 1,488,894 times
Reputation: 781
I don't think there's any proof that today's CEO's are better than previous one's

There's studies implying that high income inequality actually decreases nation's GDP: Inequality hurts economic growth, finds OECD research - OECD

Quote:
Rising inequality is estimated to have knocked more than 10 percentage points off growth in Mexico and New Zealand over the past two decades up to the Great Recession. In Italy, the United Kingdom and the United States, the cumulative growth rate would have been six to nine percentage points higher had income disparities not widened, but also in Sweden, Finland and Norway, although from low levels. On the other hand, greater equality helped increase GDP per capita in Spain, France and Ireland prior to the crisis.

The paper finds new evidence that the main mechanism through which inequality affects growth is by undermining education opportunities for children from poor socio-economic backgrounds, lowering social mobility and hampering skills development.
In example Finland has much lower inequality than America and also has much greater social movability. It seems that these two are connected
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