Jim Hightower: The Grand Larceny of Bank(er) Robbery and Executive Mediocrity
Are they geniuses, superproducers or what? What. All three of their corporations ended 2020 with big financial losses and declining value, so how can such mediocrity produce such lavish rewards? Simple — rig the pay machine.
Today’s corporate system of setting compensation for top executives is a flimflam disguised as a model of management rectitude. On its face, the system ties the chief’s pay to the success of the business. “Pay for performance,” it’s called — the CEO does well if the company does well. Good theory!
But their trick is in narrowly defining “doing well” to exclude doing good — i.e., treating workers, consumers, the environment, et al. fairly. Thus, rewarding the Big Boss is rooted in nothing more substantial or productive than the sterile ethics of monetary selfishness.
Even implementing that shriveled ethical standard is a scam at most major corporations, because the standard of financial…