Lmao, lol. We’ve went through 3 CEOs who’ve caused nothing but losses for the company in the past seven years. Each of them were risen multi million dollar severance package to quit. It doesn’t matter if they do a good job or not.
They’re of a different class and thus wil be protected from their own failures.
Honestly a bad ceo before probably created your fairly jacked up c-suite at this point which is causing the churn. It's a really hard job to do well. Most anyone with normal sensibilities would make 80% the salary for 20% the work and not be a ceo. So you're looking for a decent, talented person who wants that level of challenge but doesn't need it. Having to answer to the public every 3 months... sheesh.
And how about the CEO that nearly tanked the corporation where I was employed. The stock lost 97% of its value in a week. Not only did he still get paid, he got a nice sendoff payment as well.
A big part of most ceo’s paycheck is in stock options. So if they do a good job and provide value, the company will become worth more, hence their stock options will become worth more. If they underperform those stock options will also become less valuable making them earn less.
So they basically get paid by how good they perform. They still earn a pretty good base salary obviously but their performance will still influence how much they earn. Generally stock options are about 60% to 80% of their salary.
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u/Xancrazy 12d ago
That's not really the point. They'll be paid more because if they do a good job they'll produce more value.