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04 January 2007 @ 03:17 pm
What is with corporations these days?  
Why do the insist on rewarding failure with astronomical payouts?

Home Depot's shareholders have accepted the resignation of their CEO Robert Nardelli for failing to maintain and/or increase the value of the corporation's stock.

What does he get for his total failure as a CEO?

$210 million dollars. (Plus unpaid benefits)

Now, as my friend Paul just mentioned in a short discussion we were having...

"I like the reasoing yused by Boards. If we dont' apy big bucks to CEOs we can't get the best and the brightest" Yeah kinda hard to support that reasoing if some of the highest paid run the companies intot he ground"

And it's true...

Another thing is, you're preparing them for failure when you contract them with ridiculous exit packages like this. "Hey, I'm getting a quarter of a billion dollars whether I succeed or not, so what the hell, no ulcers for me!"

Pay them to succeed, don't pay them to fail.
 
 
 
bite_the_future on January 4th, 2007 09:52 pm (UTC)
I think I'll put in my application with HD. I could fuck up their company for half the cost.
(Anonymous) on January 5th, 2007 09:19 pm (UTC)
You are so right...
Not only do they get ridiculous exit packages that are in no way tied to job performance; but if they drive the company into the ground illegally, they claim that they are too far removed from the day-to-day business to bear any responsibility.

It would be funny if it wasn't so sad. At no other level in the business world is this acceptable. Most of the problem is that these boards are not filled by people who are likely to objectively judge and award or penalize the CEO's. They are instead populated by friends and business associates to the point that is disgustingly cozy.

Meanwhile, at the home depot, the price of wood goes up to cover for this guy's failure. This results in my ex having the worst winter as a carpenter he has ever had...