So it seems the criteria to pay Joe 15 gzillion dollars to take on a CEO role is because some other company paid their Joe 13 gzillion dollars for a similar role. Often the comparisons that Australian firms are eroneous comparing firms operating in larger, more competitive markets to those operating in a smaller and often less competitive market in Australia.
Many of our top banks and companies are paying their CEOS north of $5m (or $10m including share options) a year...Does anyone seriously think we would get a much less capable person if we paid them maybe $3m instead of $10m??Seriously this is such a case of kids in the lolly shop with no adult supervision....However expecting our boards to start to behave appropriately and cull back these ridiculous packages is a waste of time...Often they are too busy developing the justfication to increase their board fees to waste time on a munane matter like exhorbitant CEO salaries...
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