Monday, May 19, 2014

CEO's aren't the owners of the company. Stockholders are the owners.

No big news to me. When the owners of a company can't set compensation plans, the CEO takes a 'lion's share' of the wealth.

Link

In their filings with federal regulators, these companies also disclose details behind those pay plans – how much stock, stock options, “performance” shares and other esoteric holdings they’ve awarded to their top executives.

Let's see if there is a real world analogy to explain this. Nope. None. Only in the business world does the CEO get rich faster than the owners of a company.

Wait! Al Capone! Nope. Sorry. I thought I had a real world example of a CEO getting paid more than the owners of a free enterprise. Capone owned the mob. Or did he?

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