CEO salaries

KingKenny77

Are CEOs really worth the salaries they are paid?
http://www.forbes.com/free_forbes/2005/0509/109.html

Some of the salaries are absolutely awesome! I was informed that the FAI ceo gets over 400k, can anyone verify that? What about other ceos? It would be interesting to start a list, divide them into different areas of business, sports, technologies etc...

ssbob

KingKenny77 wrote: »

Are CEOs really worth the salaries they are paid?
http://www.forbes.com/free_forbes/2005/0509/109.html

It's all relative really, in the first paragraph they speak about a CEO who is earning a 25% compunded interest rate return for investors over a period of 6 years, from what I have learned from the Bernie Madoff scams, if it sounds too good to be true then it is!!!!!!!!!!!

Also they speak about a guy who is getting $13m a year for having an annual return of -7%, maybe before he came to the company it was -20%.....................

CEO's will invariably get paid what their worth unless they are with the semi-states, they get what they want!

amen

CEO's will invariably get paid what their worth unless t

nonsense. They get what they are able to negotiate with their board.


Salaries can often be smallish (300-40k) but its the bonus and share options that make the real money. In many cases bonuses can be 2-3 times salary and be very easy to reach.


In some companies CEO salary is 60+ times the average employee. Is anyone really worth much?

ssbob

amen wrote: »

nonsense. They get what they are able to negotiate with their board.

Inevitably if they are not doing a good job then they will be found out quick enough!

KingKenny77

400k+ sounds a lot for Delaney though (if that's true). Would it be agreed that he's worth it?
On the other hand, fair play to him. If it's being offered, you might as well take it!
What about the IRFU, GAA, Swim Ireland, Basketball, Tennis, etc...? Any ideas?

neris

Its the bonuses and share options that make them the money. The gus who ran bear stearns and lehmans were taking home north of 50million the year before they collapsed

KingKenny77

Holy shhhhh t. Not bad at all. I see the IRFU refuse to reveal their CEO and Management salaries.

kennedmc

CEO's in the private sector are worth their salary becasue generally they are based on the market rate and are performance realted.

I do have a question mark over salaries in the public sector as it is important to compare like with like. For example, there is no way a public sector CEO in Irleand should get the same as in the UK as the UK has a market of 60 million people and therefore has bigger income and expenditure. Irelend should be comparable to countries like Norway, Denmark, New Zealand etc.

As for John Delaney getting paid more then the CEO's of the IRFU and the GAA combined - that is just a joke - even though he rently got a pay cut to take him to 400K

KingKenny77

A pay CUT to take it to 400k? You're having me on!
It's a great country alright.

TheCostumeShop.ie: Ronan

I read a book a while ago that was talking about why CEO's get paid so much and it had an interesting point.

The wage is decided by the board. Often that CEO will also sit on the board for other companies and their CEO will sit on the board for his/hers. There is a little bit of a you scratch my back and i'll scratch yours mentality because if someone on the board rejects the proposed salary increase of a CEO it's only human nature that the guy/girl might re-pay the favour when he's making the same decision on the board for that CEO's company. And it really is a small network when it comes to those high level positions.

On the other side, most CEO's would work at least 80+ hours a week. It's normal to have meetings on Sundays etc. It does require huge commitment, responsibility and dedication that can needs to be rewarded by reflective salaries, otherwise it's a lot for someone to put their family through and decide to choose to be the one responsible for every stakeholders interest and have the buck stop with them everytime.

antoinolachtnai

I don't really think it is true that most CEOs work 80+ hours a week. It really depends on the type of industry and the management style and the company's situation.

A CEO should be paid for (a) the value they deliver and (b) in relation to the market for their services.

Different CEOs have to do different jobs. Some jobs demand massive innovation and insight. The hackneyed example would be Steve Jobs at Apple.

I this category, it really is the case that a great CEO is worth 60 times or more what the average employees is paid. At least, in terms of gains to the company - You could ask whether any person really should be paid that much money, and you could have a point -.

On the other hand, many CEO jobs, even in companies that turn over hundreds of millions of euros per year, are really not that much more complicated than being the regional manager for a group of petrol stations or convenience stores. It's people and financial management.

Because the job can vary so much, it's hard to put a number on it.

jackiebaron

antoinolachtnai wrote: »

I don't really think it is true that most CEOs work 80+ hours a week. It really depends on the type of industry and the management style and the company's situation.

A CEO should be paid for (a) the value they deliver and (b) in relation to the market for their services.

Different CEOs have to do different jobs. Some jobs demand massive innovation and insight. The hackneyed example would be Steve Jobs at Apple.

I this category, it really is the case that a great CEO is worth 60 times or more what the average employees is paid. At least, in terms of gains to the company - You could ask whether any person really should be paid that much money, and you could have a point -.

On the other hand, many CEO jobs, even in companies that turn over hundreds of millions of euros per year, are really not that much more complicated than being the regional manager for a group of petrol stations or convenience stores. It's people and financial management.

Because the job can vary so much, it's hard to put a number on it.

It's down to a few things. A lot of CEOs don't do sh!t, don't KNOW sh!t but are great bullsh!tters and negotiate huge packages..then initiate some sweeping change at a company, fcuk the whole thing up and get paid a king's ransom to fcuk off (Carly Fiorina at Hewlett Packard).
It's basically what the market will pay for these bullsh!tters. Is Wayne Rooney or David Beckham worth 150k a week (7.5MILLION annual sallary) for 90 minutes work a week? Not really..but they do bring in lots of shirt sales and they are paid this money also so they don't defect to the competition. Fukt up, really.

careca11

ESB ceo €450,000
BGE ceo €315,000
Vodafone Irl ceo €932,000
FAI ceo €410,000

they where all on the list on the sunday times a couple of weeks back

jester77

I think a CEO on a few 100K is OK. They have a highly responsible job in guiding the company in the right direction and most of those salaries should be performance based. But some salaries are just mind boggling, no way a CEO like Wendelin Wiedeking was worth over 70 million a year.

TheCostumeShop.ie: Ronan

careca11 wrote: »

ESB ceo €450,000
BGE ceo €315,000
Vodafone Irl ceo €932,000
FAI ceo €410,000

they where all on the list on the sunday times a couple of weeks back

These are all examples of companies from yesteryear though, many of which have been giving promotions and wage increases to reward time at the business rather value add. On the other side you could argue Tony Hsieh has consistently delivered 100m+ annual market value to all the businesses he has been the head of over an extended period of time (more than a decade).

Like any market some people ending up buying lemons and paying too much, but I don't think it's fair to underestimate the value that a good leader can bring to the table. Although it is a hard pill for us hard working folk to swallow that someone can earn huge multiples of the average industrial wage and end up getting a golden hand shake instead of a push off a cliff (which is what the employees they were supposed to look after end up getting).