[Vision2020] I thought you might be interested in this article

[Jeff Harkins]

The compensation packages for CEO's and other top executives are 
negotiated transactions in the marketplace.

When these individuals assume responsibility for achieving the goals 
and objectives of the firm (firms with assets exceeding several 
billions of dollars) a salary of $200 million can easily be justified.

The countering forces are many, many competitors. In today's global 
economy, the threats are numerous and significant - in my opinion, 
most of them earn every penny (or pound or franc).

Perhaps ponder the payments to young athletes - it might help you 
enhance your insight on the scale of compensation.

Michelle Wie - a 15 year old golf phenom entered the realm of 
professional golf with a $30 million plus endorsement contract.

It is reported that Tiger Woods earns over a $100 million from his 
Nike endorsement contract.

All Wie and Woods are required to do is play golf and every once in 
awhile win a golf tournament.

Many top major league baseball pitchers are compensated about $5,000 
per pitch in a game.  If a picture throws about 100 pitches in a 
game, he will earn about $500,000.  If he pitches in 30 games over 
the season he will earn $15,000,000.

 From a historical perspective, you might want to review the 
contracts that Michael Jordan had when he was with the Bulls.

Some European soccer players earn $100 - 150 million in their contracts.

The player payrolls for major league baseball range from around $20 
million (Florida Marlins) to almost $200 million (Yankees)
These salaries are for folks that play games.  Think about the levels 
of responsibility assumed when you are responsible for manufacturing 
airplanes, automobiles, drug manufacturing.

Salaries of $200 million seem reasonable.

Also, you seem focused on the aggregate amount of compensation and 
your inference that the amount of compensation is indicative of 
greed.  I would suggest that the amount of compensation is not of 
much significance except as a gauge of their relative market 
relevance.  Rather, what they do with their wealth is perhaps of 
consequence. Spending it obviously spreads that wealth to others. 
Giving it away (charity) also moves that wealth to others.

Thanks for dialogue.


At 11:21 AM 8/29/2006, you wrote:
>J-
>your point that I could sacrifice my ethics and become a CEO is a welcome
>assurance of my abilities, but that has nothing to do with the question I
>asked.
>I asked:
>In response to his sentence ---"I wish you could see that competitive
> > >behavior and free choice are forces that operate in the market as a check
> > >against greed." ---can you explain the existence of $200 million annual
> > >compensation packages for major corporate CEO's?
> > >what are the countering forces to the power of the multinational
> > >corporations?
>Are you saying that the $200 million annual salaries is not greed?
>BL
>
>
>
>
>----- Original Message -----
>From: "Jeff Harkins" <jeffh at moscow.com>
>To: "Bill London" <london at moscow.com>; <vision2020 at moscow.com>
>Sent: Monday, August 28, 2006 10:19 PM
>Subject: Re: [Vision2020] I thought you might be interested in this article
>
>
> > Bill,
> >
> > Here is a simple thought for you to ponder ...
> >
> > The ultimate force that assures that competitive behavior and free
> > choice will provide a check on greed is that there is nothing that
> > can prevent you from becoming the next CEO earning $200 million - you
> > simply have to be willing to commit to that agenda and be willing to
> > make the sacrifices necessary to achieve your goal.
> >
> > Yes indeed - you could be the CEO of WalMart and you could then
> > restructure that company or any other multinational firm as you see
> > fit - as long as you satisfy the return on capital demands of the
> > shareholders and the expectations of the capital markets.
> >
> > It really is that simple.
> >
> > You might consider reading the biographies of Dupont, Firestone,
> > Ford, Hughes, Vanderbilt, Osborne - even Gates (to name a few) to
> > gain a sense of how this is possible.
> >
> > At 11:03 AM 8/28/2006, you wrote:
> > >P-
> > >I read it and have a question or two...
> > >In response to his sentence ---"I wish you could see that competitive
> > >behavior and free choice are forces that operate in the market as a check
> > >against greed." ---can you explain the existence of $200 million annual
> > >compensation packages for major corporate CEO's?
> > >what are the countering forces to the power of the multinational
> > >corporations?
> > >BL
> > >
> > >
> > >
> > >
> > >
> > >----- Original Message -----
> > >From: "Pat Kraut" <pkraut at moscow.com>
> > >To: "vision2020" <vision2020 at moscow.com>
> > >Sent: Sunday, August 27, 2006 10:14 PM
> > >Subject: [Vision2020] I thought you might be interested in this article
> > >
> > >
> > > >
> > > > I thought you might be interested in this article:
> > > >
> > > > Liberals Should Know Better
> > > > By Arnold Kling on 17 Jan 2006
> > > > You can view it at http://www.tcsdaily.com/article.aspx?id=011606A
> > > >
> > > >
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> >
> >