Laughing All The Way To The Bank

from the executive-compensation-silliness dept 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 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 @ 10:46am

    Re: chill dude

    Constructive criticism I like and appreciate and encourage. Posting your own opinion in a negative way to three different articles in the course of 24 hours is not constructive criticism. Exaggerating your claims is not constructive criticism.

    Suggesting that we might want to look at other sources is constructive criticism which we do value. I did use my response to respond to that part of the criticism... but if you're going to be rude about how you post the criticism, then you should expect that I will take you to task for that as well.

    I'm glad you like coming here, and I'm glad you like reading the stories, and I do appreciate that you felt the need to make some comment concerning our story selection. However, in response, I was just letting you know that your methods for getting your point accross were not appreciated. If you had simply sent a feedback request asking why, I would have responded clearly explaining the reasons (as I did in the comment above). Instead you chose to post it three different times in incresasingly rude ways. There's no need for that.

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