http://blogs.scb.rit.edu/dean/2007/12/07/%e2%80%9cobscene%e2%80%9d-ceo-compensation-a-remedy/ Dr. Ashok Rao, E. Philip Saunders College of Business at RIT Thu, 30 Apr 2009 00:32:03 -0400 http://wordpress.org/?v=2.8.6 hourly 1 http://blogs.scb.rit.edu/dean/2007/12/07/%e2%80%9cobscene%e2%80%9d-ceo-compensation-a-remedy/comment-page-1/#comment-63 Umesh Ramakrishnan Tue, 03 Jun 2008 15:04:06 +0000 http://blogs.scb.rit.edu/dean/2007/12/07/%e2%80%9cobscene%e2%80%9d-ceo-compensation-a-remedy/#comment-63 I read your post with interest. I believe that before a succession plan is put in place, all organizations should go through a benchmarking exercise to ensure that their executives are on par or ahead of their peers in their positions. Too often, I see boards embarking on succession planning only to discover that they have a lean bench which then prompts an extensive review of the existing leadership talent. If only they reversed this process, they would find that succession planning becomes a lot easier than the usual headache it becomes. I read your post with interest. I believe that before a succession plan is put in place, all organizations should go through a benchmarking exercise to ensure that their executives are on par or ahead of their peers in their positions. Too often, I see boards embarking on succession planning only to discover that they have a lean bench which then prompts an extensive review of the existing leadership talent. If only they reversed this process, they would find that succession planning becomes a lot easier than the usual headache it becomes.

]]> http://blogs.scb.rit.edu/dean/2007/12/07/%e2%80%9cobscene%e2%80%9d-ceo-compensation-a-remedy/comment-page-1/#comment-11 Sandy Sat, 22 Dec 2007 22:21:52 +0000 http://blogs.scb.rit.edu/dean/2007/12/07/%e2%80%9cobscene%e2%80%9d-ceo-compensation-a-remedy/#comment-11 I am not sure the problem can be boiled down to a "supply and demand" issue to to "greed". If it was a supply and demand issue, one would expect to see a tighter link between performance and pay - which is not there. In addition, why would we not see similar trends in European companies? (http://www.faireconomy.org/files/pdf/ExecutiveExcess2007.pdf) Part of the problem is an issue of poor governance, where there is little active oversight of the most powerful people in the corporation by other stakeholders, such as board members - who are often picked by the CEO and are many times not active managers - and shareholders, who do not have the numbers or ability to coordinate action in a way that changes company policy. I am not sure the problem can be boiled down to a “supply and demand” issue to to “greed”. If it was a supply and demand issue, one would expect to see a tighter link between performance and pay – which is not there. In addition, why would we not see similar trends in European companies? (http://www.faireconomy.org/files/pdf/ExecutiveExcess2007.pdf) Part of the problem is an issue of poor governance, where there is little active oversight of the most powerful people in the corporation by other stakeholders, such as board members – who are often picked by the CEO and are many times not active managers – and shareholders, who do not have the numbers or ability to coordinate action in a way that changes company policy.

]]>