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Do IT Execs Make Too Much Money?
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Certifiable
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Certifiable,
User Rank: Apprentice
4/24/2012 | 8:36:41 PM
re: Do IT Execs Make Too Much Money?
Here in a nutshell, is the problematic attitude:
"And while no one likes the huge severance packages ousted CEOs receive, they're the contractual cost of attracting big name executives, even if they end up feeling like 'pay for failure' deals."

No contract with upper level executives should shield them from the company's poor performance or failure through no-penalty contracts that reward bad decision making or oversight! It is simple as that. When a line level worker gets shown the door, with little or no severance pay when he/she makes a costly mistake, we all understand that. When a CEO destroys or costs a company dearly, we have to understand that all rational consequences go out the door because of the enshrined golden parachute contract. This isn't about class warfare, it is just basic cause and effect! Why should chief decision makers get to avoid the basic laws of business and common sense? Are they somehow "better" than the rest of us? What they fear is real financial and criminal accountability. Contracts that shield them don't produce better CEOs, just better pirates.
MyW0r1d
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MyW0r1d,
User Rank: Strategist
4/20/2012 | 11:49:32 PM
re: Do IT Execs Make Too Much Money?
I believe all of them far exceed what is reasonable and I am no fan of pro sport's retribution either, but the CIO/CTO "should" a partner in the executive operational hierarchy of a company comparable to the other C level members. They are all excessive when you consider public official's remuneration like Mr. Obama or his cabinet staff (have they any less responsibility). I found the list of top technology execs interesting in that not one bank or trading firm was listed considering the billions they manage but Home Depot made it (this is better than the Time most influential list :-).

The shareholder's should keep their noses out of day to day operational decisions, that is what they hire the CEO and staff for, however, they should weigh in on the performance of those individuals through the Board and the President. To do so intelligently and objectively, I also agree with Frederico in that the salaries of these individuals should be published in the annual reports, but lets put a limit on anything over $1m annually (still 2-3 times the highest paid public official) or to C level staff. Far too many are not performing and still being "maintained" and provided with contracts which award them even when resigning under questionable performance.
frederico
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frederico,
User Rank: Apprentice
4/20/2012 | 6:57:14 PM
re: Do IT Execs Make Too Much Money?
the annual reports should include the total expense paid by the corporation right under the name of each director . It is now extremely hard to determine the amount of loot the various directors receive. the total cost should include all fringe benefits ie insurance,special transportation costs,special committee fees, corporate meals,awards and every expense that adds up
EVVJSK
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EVVJSK,
User Rank: Apprentice
4/20/2012 | 5:22:43 PM
re: Do IT Execs Make Too Much Money?
Agree with the 15% concept. The fact that anyone cares enough to muster some level of energy to go against the board (especially if it is a grassroots movement and not a power play) means that the board had better be listening to at least curb the bad practice or shed more light on the fact is has surfaced.
Can't comment on IRS Section 162.
With respect to IT (CIO and others), if they have made a significant contribution to the corporation they should be rewarded. It would be sad for a CIO to get 15 million and the rest of the IT workers to not get a significant bonus (take a Million out of the 15 and make sure to spread it around, it will go a LONG WAY) to folks making significantly less who are often critical to the solution as a whole!
One final point, THE MOST IMPORTANT PEOPLE to a company should be the Customers. Seems like FAR too many employees, boards, shareholders, executives, etc... paying lip service to that fact (and subsequently regret doing so). Paying execs high salaries (as opposed to fixing a few customer problems for free), paying high dividends to stock holders (as opposed to giving customers a great support infrastructure to deal with problems), paying for expensive company outings( and not reinvesting in R & D ) etc.. are recipes for waking up one day to find out that some company has stepped up and surpassed you (while the board, stockholders, CEO, etc... were patting themselves on the back and paying themselves lots of money). No one begrudges Executives and Stockholders making some money, but when the lose sight of the customers in doing so, it usually catches up with a company sooner or later (unfortunately it is often after the CEO or other execs are out the door with a few big payoff years and an golden umbrella) !
YMOM100
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YMOM100,
User Rank: Apprentice
4/20/2012 | 11:14:29 AM
re: Do IT Execs Make Too Much Money?
All executives in publicly traded companies get more than what they deserve. While they make big decisions, they do not have any responsibility as to success or failure. And even if they are considered no longer useful to a company, they get bought out and have severance packages in the millions thrown after them. Any worker in the trenches gets a card board box and an escort out the door, if not even a law suit for negligence or other things.
I don't see executive pay to go down or worker pay to go up, which means the only solution is to do as Robin Hood did: take from the rich and give to the poor. Tax incomes above 150,000 with at least 30% and include all kinds of income and financial gains in that. That will still leave plenty of money to buy new golf clubs and a Maserati.
Number 6
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Number 6,
User Rank: Moderator
4/19/2012 | 8:16:19 PM
re: Do IT Execs Make Too Much Money?
First, any shareholder resolution that gets more than about 15% of the votes is considered significant considering the roadblocks for approval and the tendency of institutional shareholders to not vote their shares or go along with the board's recommendation.

Second, one of the main objections by ISS and others to the Citigroup compensation plan was that it was not based on any quantifiable performance objectives. Take a look at the requirements of IRS Section 162(m) for example.


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