In the past week or so, there have been a few stories in the Oz news about CEOs that leave the company with huge benefit packages. In the case of the CEO leaving Commonwealth Bank, he received $33 million while the Shareholders’ stock is losing value etc. It reminded me of all the big company scandals in the US the past year or so…
You know the story…the CEO leaves with millions in benefits. Usually an absurd amount of money. In the case mentioned above, the shareholders are screwed. It does not sound like a win-win situation to me.
CEO: happy and rich after leaving company in bad shape.
Shareholders: pissed off and poor (you know what I mean).
How can contracts be drawn up so that both parties win? I am not a saint, but I can say that every contract or arrangement we have made at BootsnAll does focus on building long term, win-win relationships.
CEO: What about giving them a base salary…say $100,000 US. If the company makes some good coin, they can make some good coin as well. If the company loses money, CEO gets no bonuses. Period. That way, if the company loses money, the shareholders aren’t giving CEO’s that are leaving a company in bad shape millions of dollars. Of course, then you have a CEO who may be only rewarded by the health of the company’s balance sheet.
I’m sure sure some folks will say my thoughts here are too simplistic for large, shareholder driven companies. Maybe they are….but I am not that smart and keeping things ultra simple helps me understand it and hopefully any other folks involved. These long and crazy contracts that I see sometimes are so slanted towards one company and individual, it’s sick.
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I am glad that BootsnAll is a private company and we are not driven by the “shares market” as it’s called here. Can you see the headlines?
“3rd year in, the Boyz start getting paid”
Shareholders of BootsnAll Travel Network (NYSE: BTN) learned that the employees of BootsnAll started to receive a wage in fiscal year 2002. Sean E. Keener said that “the paperboy days were just getting old and I figured it was about time.” A class action lawsuit is being brought against the employees of BTN by the shareholders…..”
Chief Editor Chris Heidrich was seen riding his bicycle down Willamette Street in Eugene, Oregon after the announcement and shareholders are wondering if profits from 2002 paid for his new Huffy Bicycle. Heidrich responded with “No comment” and hurried away into the pub.
Nick O’Neill was reportedly seen on the beaches of Bali, supposedly opening an office in Indonesia for BTN. Our reporters were unable to locate him and get a quote.
Ant St. Clair said via telephone interview, “My name is Ant…I am going to Europe this summer, and the company does provide free coffee. Is that ok?”
More on tonight’s news at 10.