
What if C.E.O. Pay Is Fair? - kkim
http://www.nytimes.com/2007/10/13/business/13nocera.html?ex=1349928000&en=64c141849fc323a6&ei=5090&partner=rssuserland&emc=rss
======
joey
Ah, what it must feel like to be in a position where they have to bring in a
consulting firm just to figure out how to pay you.

------
yters
Playing the devil's advocate, I think large severance packages can be good for
the company. A phenomena you see in the military, and I would expect any other
place with large responsibilities, are leaders unwilling to make the tough
calls. Why? Because a bad decision can cost them their career, their family's
livelihood, and may even mean a court martial.

So, in the corporate world, a large severance package can encourage the CEOs
to make those tough calls. Of course, the other side is that taking away
repercussions can lessen the gravity of a decision, and a leader may not
exercise due diligence. Hence, large severance packages are more a balancing
act than something we should direct our moral outrage against. In my opinion,
it is often better to make a tough decision, even if it is wrong, than to wait
in paralysis.

