July 26, 2019
Seattle Times: “Laughably Disconnected From Financial & Stock Performance”
– Broc Romanek
Here’s an excerpt from this Seattle Times article:
This alignment of CEO to shareholder value, with handsome rewards for top executives, is how the theory is supposed to work. In reality, executive compensation is often laughably disconnected from financial and stock performance. At its worst, the pay model has encouraged heedless risk-taking, accounting fraud and volatility.
This happens especially because of weak corporate governance, despite efforts to improve it. Even with nominally independent directors, the board and CEO are part of the same “club,” in world view, life path, outlook and extreme wealth.
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