Laughing All The Way To The Bank

from the executive-compensation-silliness dept

News.com has an interview with a "compensation expert" (I wonder how you compensate a compensation expert?) concerning the state of executive compensation in Silicon Valley. Over the past year there have been a ton of stories about ridiculous CEO payouts even as a company was collapsing. Remember Webvan and George Shaheen? How about Pets.com giving out millions to the team who shut the company down? More recently AOL tried to hide the "lavish" stock option bonuses they gave execs by claiming they gave no cash bonuses. The compensation expert thinks this is all very bad for the industry. It used to be that people went to work for tech, and took a risk. They got a lower salary and lots of options to increase the upside if it worked out. Now, they're demanding lots of cash salary, huge optiong grants, and ridiculous severance packages. In other words, they have little incentive to do well. The article also discusses the potential impact of having to expense stock options (something most tech companies are violently against, but which increasingly sounds like a good idea). The fact is that accounting for them as an expense is much more accurate - and the point of financial statements is to get the most accurate picture possible of the state of the business.
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  1. icon
    Mike (profile), 23 Apr 2002 @ 10:10am

    Re: yet another News.com story

    It's actually less than 20%. If you don't like the stories we post, why do you come here?

    Anyway, my thoughts on the story selection:

    (1) News.com is generally one of the best sites out there for tech news. They write (usually) very good, very detailed, very well researched articles. I find that I have less problems with their articles than other sources.

    (2) They've very fast. Generally speaking, a good news story appears there before it appears elsewhere. Not always true, but often true.

    (3) They (unlike plenty of other sites) don't do any of the following:
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    So, for readers, News.com stories are generally less burdensome.

    (4) On an regular day I check well over 150 different sources (yes, I've counted). News.com consistently has better news than the other sites. Trust me, if those other sites were providing as useful articles, I'd post to them too. I still check them, every day, but News.com has useful stories.

    (5) Techdirt (if you hadn't noticed) isn't just a list of links, but our own commentary as well. I think people come here to see what we have to say. The links are simply useful additions to that.

    (6) As stated in the past, there are easy to find feedback mechanisms on this site. If you have general feedback about Techdirt, you are encouraged to use those methods. People who don't, and tend to post general feedback to specific stories lose a lot of credibility. People who don't leave real names or email addresses when criticizing someone else not only lose credibility, they lose my interest... quickly.

    I like constructive feedback that is helpful for me. Your comments are not constructive.

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