Have CEO Salaries Crossed the Line?
January 24th, 2007 by thewealthrebelLately we’ve been hearing a lot in the news media about CEOs and their salaries, one of the areas of concern are the CEOs who are receiving a high eight figure salary package and company perks, but whose company stock is under performing.
A good example of this, is the CEO of Ford Motor Company, the CEO works in Detroit but lives in Florida, and flies home every weekend on the company private jet, all the while the company is loosing money every quarter its stock is at a all time low.
I can understand why the public is upset, and absolutely agree that there should be change in CEO pay. But some are calling for the government to step in to help make these changes; I feel that would be a big mistake. Once we give permission to the government to step in and help with this problem, you have now opened Pandora’s Box. Who will be next…. Will it be attorneys, doctors, nurses, small business owners, is this really what we want, I don’t think so.
Yes we need change, but it must come from the corporations, JP Morgan believed that a company President/CEO salary should never be more that 10 times the average company workers pay, how times have changed. There are ways that a corporation can tie CEO pay to company performance and I think they should, especially when they are a publicly traded company.
Give us some feedback. Let us know what you think by leaving a comment below. Are CEO salaries too high? Should the government get involved?
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January 24th, 2007 at 1:34 pm
The best way to keep CEO pay in line is to stop the kind of tax funded subsidy that the State of Michigan is doling out. Let Ford go under: CEO pay = 0.