Grouchow's Weblog

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.)