I have reported how a mailmen would suffer from Mind Blowing CEO Riches. This time Bush argues during his “State of the Economy” speech how CEO compensation should be tied to their performance and CEOs enormous salary doesn’t sit well to the country’s investors.
Unless the CEO is Jack Welch, most of the top executives receive large salaries despite their mediocre performance; such is the case with Home Depot CEO Bob Nardelli who got paid $25.7 million a month and received $210 million in severance pay.
In an excerpt of the story:
â€œThe fact is that income inequality is real. It has been rising for more than 25 years,â€ the president said. â€œThe earnings gap is now twice as wide as it was in 1980,â€ Bush said, adding that more education and training can lift peoplesâ€™ salaries.
â€œGovernment should not decide the compensation for Americaâ€™s corporate executives,â€ he said. â€œBut the salaries and bonuses of CEOs should be based on their success at improving their companies and bringing value to their shareholders.â€
Picture above and story found here.