question
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Just curious because I was reading up on an article regarding the recent problems in the stock market. and one of the things mentioned was the CEOs involved. And what was mentioned was people worked harder when paid a proper salary. It motivates them to be paid what they deserved. And the research done showed(at least in the article) all the current salaries of well performing CEOs were pegged to the market including all the perks.
And what else was mentioned was the flip side of the coin on how overpaid CEOs were performing badly. After getting a salary not related to their performance, it showed how once overpaid the performance started to suffer with the CEOs in question starting to grab what ever they could since no matter what they do their pay would not be affected and the board would most likely approve of their suggestions for pay raises and bonuses. One of them actually took back more than 300million USD.
Question is, I also remember reading about how minsters in singapore have their wages revised against the market to ensure the best talents are retained. Why is it their pay is based on someone in a different career path? Even after proven to be inept?
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Good question.
But I doubt anybody from the top can give you a reasonable and logical answer.
Other than their usual nonsense.
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It was reported in Parliament that one MP asked why ministers were getting CEO salaries but were never held accountable when things went wrong during the MS escape saga.
The reason given was that we cannot go around sacking everybody everytime a mistake was made.
Go figure.
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In the american case, it is a total collapse of corporate governance.
In the case of lehman bros CEO, i think he hold both the CEO and charmain of the board. thus giving him utmost power in the company. remember TT durai.? sound similar.
in singapore parliament,the PAP has the majority, they can easily legalise compensation package that maybe be deem illegal or unjustify in some country.
The hold the too big a power in parliament and without much opposition to stop them for doing what they deem is good ( if you believe) for sgporeans.
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The justification of CEO's hight salary are either they are really talented or they are major shareholder.
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Originally posted by charlize:
It was reported in Parliament that one MP asked why ministers were getting CEO salaries but were never held accountable when things went wrong during the MS escape saga.
The reason given was that we cannot go around sacking everybody everytime a mistake was made.
Go figure.
really lah, i always feel that who ever asked all those questions are stupid, its obvious to the public's eyes who's at fault, but all they can do is parrot what they read say one line and then get a dumb answer and diam diam. its not like what they're saying is anything smart also. give people the feeling they say for the sake of showing they're opposition and not because they're good at raising issues making situation feel more hopeless.
the way they do it i rather they don't say at all. obviously still can ask again if what PAP means is no action can be taken because cannot sack people anyhow even when mistakes are made.
why is it our politicians all extreme ends one,
can't speak up properly, or speak up too much say wrong things.