Interim CEO For $60,000 A Day

from the nice-work-if-you-can-get-it dept

It seems like every time we hear about a celebrity CEO getting fired, it’s quickly followed by a report on their compensation — which often seems ridiculous. There’s nothing wrong with successful CEOs getting rewarded for building up a company (though, they’re often given more credit than they deserve), but why is it that boards of directors repeatedly work into contracts plans to pay out millions of dollars for failures? The most recent case, of course, was HP’s Carly Fiorina, who took with her $21 million in severance money (and the possibility to get more over time). Of course, that was after Craig Conway was handed $16.5 million for lying to his own board. The situation at HP, though, gets a little stranger. Not only did firing Carly cost them her severance, the company also paid their interim CEO $3 million for a whopping 52 days of work. This seems a tad excessive, and certainly makes you wonder what HP’s board members are thinking. They just had to pay for the costly ouster of one CEO, and they’re immediately paying a ton to someone for a couple months of service (not to mention the similar severance package they set up for the new guy). At what point do they learn that these sorts of packages do nothing to actually help the company, but put in place all sorts of incentives that will hurt the company?

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “Interim CEO For $60,000 A Day”

Subscribe: RSS Leave a comment
1 Comment
Ken cunningham says:

Huge severence packages

When the average person is ‘released’, they get maybe 1 months pay for every year worked there. Maybe it’s just the 2 week severance. CEO’s who are released should have to deal with the same thing. Giving them more money in one shot, after the average person who won’t make the same amount no matter how long they work there is ridiculous.

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...