Monday, January 08, 2007
@11:25 AM
Soaring CEO salaries in the US raise ethical questionsThis issue is hot in the news now and it will only get hotter. Maybe the salaries in Singapore isn't as bombastic, but I guess the main concern locally is the problem of non-disclosure of directors' salaries. It's crappy when they claimed that revealing compensation will increase competition. Bullshit.
Anyway, back to the title of this post. I will quote some lines from this article, and tell me how you feel about it.
- The abrupt departure of Home Depot Inc chief Robert Nardelli last week, with a US$210 million exit package in hand, show how skewed CEO pay can be.
- In 2005, the ratio of CEO pay to average worker pay was 411 to 1.
- That compares with a 1980 ratio of 42 to 1.
- What's particularly galling in the Home Depot case is that the stock fell 8 per cent under Mr Nardelli's leadership, trailing chief rival Lowe's Cos Inc, which has paid its CEO much less.
Think about it. Is the compensation so high because top CEO is in such short supply? Or is it unartificially because well-paid CEOs tend to be on company boards and approve executive compensation?
I doubt Singapore salary structure will turn out this way, but I will appreciate it if companies will state out the compensation of directors and top executives clearly in the annual reports.
by Str|fe
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