CEOs and Bail Out Posers

OK, I was hot under the collar, this morning. I just have so many unanswered questions.  Because, once again, CEOs and their salaries are under fire in all forms of media.  I heard that there is a proposal to cap all heads of corporations. 

The so called news broadcasters, tv or radio, liberal or conservative, just haven’t asked a couple of questions I would like answers to.

Who hires the CEO?? Isn’t it the Board of Directors? Or is it the share holders of the Corporation?  How does all of this work?  Anyone, here on the Internet, know?

And…

Who sets the Board’s salaries?
Doesn’t a Board of Directors make the potential CEO the deal of a lifetime to come in and run the company?

And…

Surely, any Board of Directors has some say when it comes to electing or choosing the Chief Executive Officer.  Don’t they?
Or, have these people been elected by their share holders?
Since the companies do send proxies to share holders for elections, who are the share holders electing?

From what little I know about corporate structure, I assume, the big time CEO doesn’t walk into the average Personnel Office for an interview!  Nor does that CEO walk into a board room of a corporation and announce “I am here, pay me a small fortune and I will run your business!”. 

I would think that the Board of Directors has invited a potential CEO to come and join the ranks of the company.
 
And, if said potential CEO, is offered a salary increase for leaving a previous company, I don’t think he/she would be stupid enough to say NO THANK you.  I want to work for less money than the job I just left. Duh!  (I couldn’t help the sarcasm.)

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5 Responses so far »

  1. 1

    supergranny said,

    Good questions! I’ve got to think on that a bit. All I know for sure is this quote from Thomas Jefferson……
    A government big enough to give you everything you want, is strong enough to take everything you have.
    — Thomas Jefferson

    Think on that for a bit!!

  2. 3

    SG has it right! LOL As for corporations, it would be nice if a CEO could go in to Personnel or Human Resources or whatever they call it now and say, “Hi, I’m here to run your company.” The shareholders vote for the directors who usually do the choosing of the higher-ups in the company. I believe every company sets their own salaries and compensations. That is, until now, when Uncle Samski is going to do it, whether the US Supreme Court says it’s constitutional or not. If you look at all the sudden changes we’re being bombarded with, you will see the front problems, set up as smoke screen and diversion to what is happening behind the scenes and over a much broader area. You have identified the problem of capping all corporate salaries and that is the underlying problem. Barney Frank will say, “Well, we did it with AIG!” and assume that’s the justification for doing it to all PRIVATELY or SHAREHOLDER OWNED companies [as opposed to GOVERNMENT OWNED companies, which is a hallmark of alternative economic systems i.e. NOT CAPITALISM.] This is a very frightening time in our country. Thanks for your rant.It should get us all thinking.

    • 4

      grouchow said,

      “NOT CAPITALISM” exactly Sunflower, that is why I posed the question! Hoping to wake the sleepy heads up in what little way I can. Thanks for the post

  3. 5

    Hi! You sure got me thinkin’!!! Thanks for letting ME rant, too, on a very disturbing time in our nation’s history. I hope the “sleepy” heads as you call them will wake up. Keep up the good work!!


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