> There's no direct linear correlation between compensation and performance. Anything but, considering that some people rake in more for failure than most of us will receive in a lifetime of success.
Well compare nokia vs blackberry. Both ended up on the shit end of the smartphone market, but nokia hired a microsoft exec to prepare it for a sale and we see a large payoff to the CEO and the majority shareholders compared to blackberry compared to blackberry The difference Elops connection to microsoft is a difference in Many Billions of dollars to the majority shareholders, so his 50m dollar bonus is a tiny drop.
But as a small retail investor I feel screwed. I wasn't sold a back room deal that I could use to hedge against shorting blackberry. I was sold nokia's great technology and a smartphone comeback that would put it back in a competitive position with apple and google What do i care if i lost 2k or 4k, I want my CEO to fight to the death to keep the business going instead of making back room deals and stripping the company. I can't imagine what the employees feel.
If you really want to make CEOs sweat, how about making it easy for employees to leave and start competing companies? Like healthcare and cheap small business loans to industry professionals. It would force companies to value their experienced employees, pay them more, treat them better and much less likely to offshore.