Should CEOs Pay For Their Jobs? Don't Some Already?

Came across a post this week arguing that instead of paying CEOs millions to do their job, CEOs should bid for the privilege of having that position at a public company. Now at first, I'll admit, I just thought this person had been reading too much Gretchen Morgenson. But after marinating on it for a bit, I realized, this isn't such a radical idea. In fact, it's already done all the time.

When one company opportunistically buys another company that's trading at multi-year low, they're pretty much paying for the right to play management. Same when a private equity firm buys some ailing company. There are all kinds of variations on this -- investors paying a big chunk for the right to run the company.

In a lot of situations, it just doesn't make any sense. But the idea of paying for the right to manage and then capture the upside in a company is about as standard as it comes.

More: Also, a lot of CEOs, as part of their employment agreements, make personal investments in stock, right? Not that they necessarily bid on this, but still.

Comments

[cheap jerseys for sale]

God Bless you!

[dr dre studio black]

I guess I am not the only one having all the enjoyment here!

[ティンバーランド]

１０日が初出席となる大阪府の松井一郎知事は、安全確認を前提としながらも「被災地は大変な状況。日本中で支えなければいけない」と受け入れに前向きな発言をしている。

　ティンバーランド一方、９月の台風１２号による紀伊半島豪雨で発生した大量のがれき処理が問題となり、他府県の応援を受けている和歌山県は、東日本大震災の被災地を支援する余裕はなく、担当者は「受け入れ可能な状況にはない」。