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NFPCC’s Thoughts on “Excessive CEO Pay for Dumb Luck”

Interesting article. However, a few additional points to complete the compensation picture.

One, there is no reference to actual pay received as tied to stock price performance. Rather, this is a reference to the summary compensation table. Added, the summary compensation table is hodge-podge of GAAP and “non GAAP” reporting as well. Bonuses based off non GAAP measures and Summary compensation tables are imperfect reporting mechanisms. In short they do the best with what they have.

Also, there is no mention of supply and demand of talent. In a free market, if there is a shortage of something, the price goes up.

While it seems like there should be lots of really great CEOs walking the streets, available to take the next offer, history indicates there are not lots of Michael Jordans of the business world. As such, the price goes up more than the average employee.

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