paul's e-scrapbook


Paul B. Farrell's Words


From PAUL B. FARRELL 's column in DowJones MarketWatch.com:

Title: "Warren Buffett, America's greatest story-teller"

Sub-title: "Four stories about our loss of integrity, ethics and moral character"


Corporate America's raging CEO pay

"Too often, executive compensation in the U.S. is ridiculously out of line with performance," says Uncle Warren, "because the deck is stacked against investors when it comes to CEO pay. The upshot is that a mediocre-or-worse CEO -- aided by his hand-picked VP of human relations and a consultant from the ever-accommodating firm of Ratchet, Ratchet and Bingo -- too often receives gobs of money from an ill-conceived compensation arrangement."

For example, CEO "Fred Futile" of "Stagnant, Inc" gets gobs of options from his buddies. The company does stagnate. But good ol' Fred cleans up, even when the investors lose. If he gets fired, Fred "can 'earn' more in that single day, while cleaning out his desk, than an American worker earns in a lifetime of cleaning toilets."







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