Thursday, February 16, 2012

Occupy Facebook!

Because they’re the 1%, y’all.

It's hard to say what's fair when it comes to paying top executives. That is, in part, how boards get away with approving large paydays. Facebook's huge success, too, blunts criticism.

One yardstick, though, could be Wall Street, which is routinely singled out for its over-the-top compensation. Compared to Facebook, Wall Street pay looks like peanuts. The only bank that comes close to Facebook is JP Morgan Chase (JPM). That bank's five highest-paid executives got $79 million in 2010 (none of the banks have said what they paid in 2011 yet), nearly $4 million less than Facebook.

Clearly, these out of control executives need a lesson.  Where’s the damned pay czar?

1 comments :

Unknown said...

Why on EARTH does Anyone "need a lesson", Comrade?

This isn't Russia, is it?

If an executive produces Tens or Hundreds of millions of dollars of revenues for his employer, why should anyone care if the employer chooses to compensate that executive for their production?

In case you weren't aware, for publicly traded corporations, there is a control mechanism - its called the stockholders, and they have the right to Vote out the management if a majority of stockholders are unhappy with management for any reason.

Not surprisingly, most stockholders seem to focus on stock value, profits, and ROI, rather than arbitrary wage controls on corporate executives.

That's what happens in efficient economic systems.