Tag Archives: overpaid executives

Japan Airlines CEO on CEO Pay

Posted on December 8, 2008 by John Hunter

Nice webbast of CNN clip on Japan Airlines CEO cutting his pay to less than that of the pilots. He really seems to understand the company does not exist for him to plunder (unlike so many CEOs in the USA). Related: Japan Airlines using Toyota Production System Principles – Under Nishimatsu, Japan Airlines Tries to Rise Above Legacy – Respect for Employees at Southwest Airlines – posts on executive pay – Honda executives not overpaid either

Posted in Management, webcast | Tagged , , , | 2 Comments

Tilting at Ludicrous CEO Pay 2008

Posted on November 10, 2008 by John Hunter

I continue to tilt at the robber barron CEO pay packages (2007 post on CEO pay abuses). 2007 pay rank Company CEO Pay 5 Year Pay CEO % of 2007 Earnings 1 Apple Steve Jobs $646,600,000 $650,170,000 18.5% 2 Occidental Petroleum Ray Irani $321,640,000 $509,530,000 5.9% 3 IAC Barry Diller $295,140,000 $512,270,000 Company Lost Money 4 Fidelity National Financial William Folley $179,560,000 NA 138.4% 5 Yahoo! Terry Semel $174,200,000 $432,490,000 26.4% 7 Countrywide Financial Angelo Mozilo $141,980,000 $295,730,000 Company Lost … Continue reading →

Posted in Data, Economics, Management, Respect, Systems thinking | Tagged , , , , , , , | 5 Comments

CEOs Plundering Corporate Coffers

Posted on October 22, 2008 by John Hunter

Pointy haired bosses broke the code they provided on their site for embedding a Dilbert comic, so I removed the broken code. Dogbert: “I am stepping down as CEO so I can spend more time with the money I stole from this hellhole.” Unfortunately we still have far too few people that see the obscene behavior of CEOs and their brooks brother bureaucrats as unacceptable. The behavior of many of them has been similar to that of dictators looting the … Continue reading →

Posted in Management, Respect, Systems thinking | Tagged , , , , | 17 Comments

Customers Get Dissed and Tell

Posted on February 28, 2008 by John Hunter

There are those rare companies where interacting with them is not a dreaded experience: Trader Joe’s, Southwest Airlines, Ritz Carlton, Crutchfield, Cannon, Groovix. There are not many. And even just providing something that just works is seen as a treat. The all too common dis-service, combined with the internet, leads to Consumer Vigilantes: a growing disconnect between the experience companies promise and customers’ perceptions of what they actually get. … A swell of corporate distrust – exacerbated by high executive … Continue reading →

Posted in Customer focus, Deming, Management, Psychology | Tagged , , , , , , , , | 7 Comments

Tilting at Ludicrous CEO Pay

Posted on June 11, 2007 by John Hunter

I continue to tilt at the robber barron CEO pay packages. Hopefully, at some point, the people approving these obscene pay packages can be shamed into stopping or replaced by people with some sense of decency. I was taught in the days of robber barrons the business world was seen as an amoral place (morality did not belong in this area of human endeavor) but that over time society decided that in fact morality did apply there. It is hard … Continue reading →

Posted in Deming, Economics, Management, Performance Appraisal, Psychology, Respect, Systems thinking | Tagged , , , , , , | 10 Comments

Exposing CEO Pay Excesses

Posted on March 23, 2007 by John Hunter

The politics of pay from The Economist: Although barely one-tenth of the 2,000 biggest American companies have yet reported under the new rules, the tally of negative headlines is already mounting. “There are already plenty of examples of firms reporting chief-executive pay packages of millions of dollars more than expected,” says Paul Hodgson of the Corporate Library, a research firm. He reckons that the firms that have already reported are a representative sample likely to provide a good indication of … Continue reading →

Posted in Deming, Management, Respect, Systems thinking | Tagged , , | 4 Comments

Compensation at Whole Foods

Posted on February 6, 2007 by John Hunter

Compensation at Whole Foods Market [the link that Whole Foods broke was removed] Most large companies also pay their executives large amounts of stock options in addition to large salaries and cash bonuses. However, this is not the case at Whole Foods Market. As the chart below indicates, the average large corporation in the United States distributes 75% of their total stock options to only 5 top executives with the remaining 25% going to everyone else in the company (actually … Continue reading →

Posted in Management, Psychology, Respect, Systems thinking | Tagged , , , | 1 Comment

More on Overpaid CEO’s

Posted on October 4, 2006 by John Hunter

CEO pay up big – but not performance: The Corporate Library analyzed the compensation of nearly 1,400 chiefs for its annual report on CEO pay. The group’s median total compensation rose 16 percent between 2004 and 2005. A year earlier, CEOs got a bump of 30 percent in total compensation, which includes salary, bonus, perks, exercised stock options and other long-term incentive pay. This is more bad news. As Drucker, Buffet and many others have said CEO overpayment is bad … Continue reading →

Posted in Management | Tagged , , , | 2 Comments

Excessive CEO Pay

Posted on September 28, 2006 by John Hunter

Overpaid CEOs and Underpaid Managers: Fairness and Executive Compensation by James B. Wade, Charles A. O’Reilly, III and Timothy G. Pollock: We also find evidence suggesting that CEOs serve as a key referent for employees in determining whether their own situation is “fair,” and this influences their reactions to their own compensation. More specifically, we find that when lower-level managers are underpaid relative to the CEO, that is, underpaid more than the CEO or overpaid less, they are more likely … Continue reading →

Posted in Deming, Management, Psychology, Respect, Systems thinking | Tagged , , , , ,

More on Obscene CEO Pay

Posted on June 22, 2006 by John Hunter

Study site: CEO-worker pay imbalance grows [the broken link has been removed] includes the graph above. Unfortunately this reverse robin hood (steal from the workers, stock holder, customers…) and give to the CEO tale continues. Hopefully someday soon we can at least turn the momentum in the right direction (stopping these incredibly excessive “pay” packages). Even then it will take quite a deal of reducing these ridiculous “pay” packages to reach some sense of decency. CNN article based on the … Continue reading →

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Drucker Opinion Essays from the WSJ

Posted on December 10, 2005 by John Hunter

The Wall Street Journal has posted selected opinion essays by Peter Drucker [the broken link was removed] along with several tributes to Drucker. The Five Deadly Business Sins (article removed so link removed), 1993: the worship of high profit margins and of “premium pricing” mispricing a new product by charging “what the market will bear cost-driven pricing slaughtering tomorrow’s opportunity on the altar of yesterday feeding problems and starving opportunities Is Executive Pay Excessive?, 1977. In 1977, his answer was, … Continue reading →

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Excessive Executive Pay

Posted on December 4, 2005 by John Hunter

Topic: Management Improvement Via Christian Sarkar [the broken link was removed], Too Many Turkeys, The Economist: Executive compensation in America – already far ahead of the rest of the world, despite the best efforts of overseas managers to catch up – is now rising inexorably again. In fiscal year 2004 the total compensation of the median American company boss rose in every industry… according to a new report by the Conference Board, a research organisation. In the big companies that … Continue reading →

Posted in Management, Psychology, Respect | Tagged , , , , , , | 18 Comments

The Economist on Drucker

Posted on November 20, 2005 by John Hunter

Trusting the teacher in the grey-flannel suit: He was a harsh critic of the assembly-line system of production that then dominated the manufacturing sector – —partly because assembly lines moved at the speed of the slowest and partly because they failed to engage the creativity of individual workers. The biggest problem with evaluating Mr Drucker’s influence is that so many of his ideas have passed into conventional wisdom “in other words, that he is the victim of his own success. … Continue reading →

Posted in Management | Tagged , | 6 Comments