I think the whole thing falls apart when you get to the point of a CEO making so much money, regardless of their performance, that they can just retire after a single year.
So what if I don't get my contract renewed if I have $50 Million, that's more than most people make in their entire lives. See you at the beach!
A counter consideration I’ve heard is that they have to pay more to keep them off the beach! If the board thinks Turskarama is the best leader for the org, then they have to pay enough to keep you off the beach. Which could be absurd amounts of money.
The problem is that that amount of money doesn't exist, I simply do not desire a lifestyle that costs me more than maybe a couple hundred thousand a year, tops.
At some point sure maybe I can work for a couple of years and I will earn enough to buy myself a super yacht... but I don't want a super yacht as much as I want to not work.
It's very funny to me that people make the argument against raising welfare that there will be no incentive to find work, yet somehow they think this same argument can't apply to the super rich who can retire with a lot of money instead of struggling along on a subsistence income.
So what if I don't get my contract renewed if I have $50 Million, that's more than most people make in their entire lives. See you at the beach!