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Who Needs A Graceful Exit When It Comes With Buckets Of Cash?
from the fire-me,-please dept
A few months ago we talked about how Craig Conway was "fired" for lying to his board, but still ended up walking away with a $16.5 million severance package. So, while Business Week is reporting that Carly Fiorina had been asking other top CEOs for months how she could "gracefully" leave the company, it looks like grace doesn't much matter when you're "fired" with a $21 million severance package. Now, here's the amazing thing: compensation experts are saying this package is below industry standard and that she could have fought for more. While there's nothing wrong with executives who negotiate good compensation packages for themselves, you have to wonder why companies continue to give execs such lucrative incentives to fail. Why don't boards of directors put in clauses that make it clear that dragging a company down voids these types of severance deals?
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> voids these types of severance deals?
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Its an old boys network for the most part.
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why dont they pur in such terms as to void severen
Also, from a stock point of view a stock which bounces up and down reliably is a much better stock to trade than one that is rising all the time, or tanking and staying low, so some "bad" jobs prove to be much better for the stockholders and directors than better performing ones.
sadly the only thing that rewards a company is what they can return over a short term to stockholders (per my scenario above) and not what they provide to either their corporate mission, or customers. They can be horrible there, and be a "good" stock to the right stock players.
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