This post addresses CEO compensation.
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The following quotation appeared in the Fortune magazine "I have never asked to serve on a corporate board, never even hinted at wanting to be on one. And I have never asked to be on a compensation committee. I suspect that the reason I've been put on so many is that word gets around that I believe in paying people very, very well... I cannot sit and say to you what the right compensation number is. That's the judgment call, the business judgment call. That's what a board of directors does... What I know most of all is that when I see extraordinary effort and results out of a CEO, you can't pay him enough."
Evaluate the comments made by this particular director.
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Solution Summary
The solution discusses the following comment, I have never asked to serve on a corporate board, never even hinted at wanting to be on one. And I have never asked to be on a compensation committee. I suspect that the reason I've been put on so many is that word gets around that I believe in paying people very, very well... I cannot sit and say to you what the right compensation number is. That's the judgment call, the business judgment call. That's what a board of directors does... What I know most of all is that when I see extraordinary effort and results out of a CEO, you can't pay him enough.
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The comments made by the director show exactly why he's in high demand by companies, which is due to the system of performance evaluation that he uses to compensate executives. There has been an intensive focus in recent years on executive compensation, both by the government and by the public. The government contends that the compensation cannot be either too realistically low (to keep expenses ...
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