

Sprint CEO Dan Hesse  (Source:









Source: Kansas City Business Journal

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RE: You gotta like Hesse
By The Raven on 5/10/2012 9:49:02 AM , Rating: 2
Thus, pay has to fit in with operational costs while still allowing either a break even or profit. What I was getting at was say you have an average base salary of 30k, the CEO is locked to that base with a multiplier, decided by not only the board (we'll get to that) but by shareholders as well. As it is right now, many CEO's are getting 150-300 times the pay of that average (not all) which is asinine in itself.
Oh ok I see. You are absolutely right. Give this man the Nobel prize in economics! Now take this idea and run with it. Start a company and rather than pay a CEO large amounts of cash, pay him X multiple of the base salary because we all know that execs only work 40 hrs/wk and make tiny decisions like the rest of the company. You will totally be able to low ball all your competitors and put them all out of business. You are a genius! It is such a simple idea, why didn't I or a million other people think of this?!? Let me know when you start it up because that is a board that I want to be on if you'd have me.

RE: You gotta like Hesse
By MrBlastman on 5/10/2012 10:25:44 AM , Rating: 2
I think you're sarcasm is unfounded here. You totally glossed over one of my previous posts in this thread...

I would hope you don't, as I don't belong in that category. I realize the CEO spot takes a special person to do the job. Most people aren't cut out for it and the 24/7 sacrifice they put into their position is insurmountable and unimagineable by most. I know CEO's and have been around them for my whole life. What I don't like is greed.

A 25x multiple, per hooked on Mathics(sp?) is 750k assuming employees earn an average of 30k. If say they earn 50k, it moves up to 1.25 million. Then, on top of that, the CEO's could earn a performance bonus (yet the employees would have to receive one as well).

I don't care if a CEO would or would not want to serve with that board. You've TOTALLY missed my point...

My point is to get rid of boards deciding compensation completely and put it up to shareholder vote. Boards are littered with other CEOs looking for a payday.


RE: You gotta like Hesse
By The Raven on 5/10/2012 3:11:28 PM , Rating: 2
Really? Most shareholders don't know much about their portfolios let alone how to determine what their execs should make to make an informed decision on such a thing. And who is to say that if the shareholders did form a direct democracy that the result would be any different? But anyway if you were ok with that I don't see why shareholders wouldn't be able to determine the salary of all of the employees. I know a lot of people at the DMV who should be paid less.

And besides, if CEO pay was such a concern shareholders have a meetings where they elect the board members. So basically that is your idea except it is a representative form of it. I'm surprised that you didn't know this already about the typical corporate structure.

And that brings me to the point that you seem to miss and that is that if what you propose is such a great system, why doesn't anyone use it? You sound like you assume that the shareholders and board members are all a bunch of greedy dolts who just want to take the money and run. They have a very sizable interest in seeing the company succeed. Does corruption exist? Yes. Do you have to take efforts to curb corruption? Yes, you do at all levels of life. And that is the kicker. Like in your example where the board members are just looking for a raise at their company. Ok let's shift that power to the shareholders and they all vote themselves a raise. What the hell?

If you don't like this system. Don't use a cell phone or buy soap or hamburgers in America or most of the world. Go into the hills and live off the fat of the land.

Anyway, sorry if I missed some of your previous posts. Though I thought I read most of them. But really what you are saying is so crazy to me that I really have given little thought to it ever since I realized that Santa Claus isn't real.

RE: You gotta like Hesse



Playa gonn' play.


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