Apple's Tom Cook isn't the worst example of excessive CEO compensation, but his huge stock option grant is bad news all the same.
It's bad news because it tells us that Apple 4.0 is becoming an average publicly traded corporation even more quickly than expected. This kind of compensation demoralizes employees who deal with tight budgets, even as their CEO earns a year of their pay in a day. Perhaps worse of all, when you pay a CEO a hundred times what their star employees receive, they imagine they're 100 times better than those employees.
An overpaid CEO is a CEO on chronic meth - intoxicated by the inarguable evidence of their perfect brilliance.
See also:
- Gordon's Notes: What are the consequences of extreme executive income? 11/2011
- Gordon's Notes: Natural selection and executive compensation 2/2009 - we've established an ecosystem that selects for internal predation, not wise leadership
- Gordon's Notes: Performance-based compensation and novel financial instruments: an explosive combination 1/2009
- Gordon's Notes: Will winner take all work? 9/2006
- Gordon's Notes: Mass disability and the middle class 9/2011.
- Gordon's Notes: Where has the money gone? To the very American oligarchy 2/2006
- Gordon's Notes: Unemployment and the new American economy - with some fixes 1/2001
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