Friday, February 6, 2009

CEO SALARY SHOULD BE BASED ON 4 ELEMENTS

1. SIZE OF INDUSTRY

2. PERFORMANCE OF THE COMPANY COMPARED TO IT’S INDUSTRY OF THE PERIOD UNDER REVIEW

3. COMPARISON OF THE NUMBER OF AMERICAN JOBS- END OF PERIOD COMPARED TO BEGINNING OF PERIOD

4. TOTAL PAYROLL EXCLUSIVE OF EXECUTIVE TIER AT END OF PERIOD COMPARED TO BEGINNING OF PERIOD

IT HAS BEEN PROPOSED THAT A CHIEF EXECUTIVE OFFICERS SALARY COULD BE LIMITED BY THE GOVERNMENT WHEN THE COMPANY ACCEPTS BAIL OUT FUNDS FROM THE GOVERNMENT.

EVERY COMPANY BENEFITS FROM THE INFRASTRUCTURE (FINANCIAL, GEOGRAPHICAL, TRANSPORTATION, COMMUNICATION, LEGAL) FOR WHICH THERE IS NO SPECIFIC CHARGE.

PEOPLE THEREFORE HAVE A STAKE IN THE OPERATION OF ALL COMPANIES WHICH THEREFORE JUSTIFIES AN AMENDMENT TO FREE ENTERPRISE TO DEVELOP THE MOST GOOD FOR THE MOST PEOPLE.

THE DETERMINATION OF THE BASE SALARY REQUIRES CAREFUL DETERMINATION. THE DEFINITION OF THE INDUSTRIES TO WHICH THE COMPANY IS COMPARED, WOULD HAVE TO BE DETERMINED LIKEWISE THE EXECUTIVE TIER WOULD HAVE TO BE DEFINED.
THE COMBINED SALARIES OF THE EXECUTIVE TIER WOULD BE TOTALED AND CONSIDERED THE SALARY OF THE CEO.

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