The deal to purchase Yahoo is all but dead as Yahoo announced a massive security breach that happened almost three years ago, yet their CEO, if fired, will walk away with a $143 million package. Who is going to lead the revolution to stop paying CEO’s who fail?
The CEO of Well’s Fargo is stepping down and although the Board cut his package he still is going to walk away with well over $100 million. The stories of failed CEO’s and their outrageous exit packages are over the Internet and frankly employees are getting discouraged.
The “country club” atmosphere of the CEO and their Board has been going on for too long in corporate America. Millennials, who make up the biggest portion of the workforce, have had enough and are leaving companies that lavish perks and mega dollars on company executives while the rank and file see what little raises they get eroded by higher health care costs.
Whose responsibility is it to ensure that a CEO’s salary is in line with the reality of todays expectations? Well, the Board, of course, usually made up of current and former CEO’s isn’t going to come forward and say “let’s cut the compensation package”. It has to come from both investors and employees, along with senior executives in HR who understand and can communicate the dangers of paying a CEO too much money.
What if the CEO is successful? Do they still deserve packages in excess of ten million dollars? My personal feeling is no but the rich like to share money among each other. Jack Welch, for example, still has access to GE corporate jets even though he retired a long time ago. The question, however, that is not being addressed is “what effect does this have on our employees?”. Nobody seems to care and after all we can still pay employees well to keep them quiet.
American CEO’s are the highest paid in the world and too many leave with a ton of money even when they fail. Corporate America has to change that.