Should CEO's take a pay cut ?

kartik

Kartik Raichura
Staff member
Well, I have posted this question after reading a news on Citigroup's CEO Vikram Pandit continuing to work for an annual salary of $1. Should CEOs take a pay cut to help out their company and its employees? I am sure you would have lot to say on this.
 
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shrey420

Guest
Yes, but the CEO's sole value is setting the corporations "mission statement". There is no other measurement of performance. And - no - connections (many of them directors of other board they sit on) do not net any corporation mega millions of dollars annually, or in even one single year. This blarney that a CEO brings high-powered connections to a corporation is malarky. I believe in the free-market system, but to maintain the same, we must exercise common sense.
 

lax

New member
Yes, they should. CEOs fall under the 'Employee' category of a company too. It's just not fair that the non-CEOs bear the brunt of a company cost reduction strategy!:SugarwareZ-041:
 

bala_mk

New member
Yes. i agree with sureshkar. All ceo is deserved to get credit to their work. There is no valid point behind only the investor get all profits!
 

diaz

Par 100 posts (V.I.P)
payments are like the motivation to an employee.. in a worst case ceo must suffer from pay cuts else he looses interest and the loss is to alll
 

raiv88

Par 100 posts (V.I.P)
Definitely NO, why should a person who deserves the BEST should compromise, when a lot of Political Jerks enjoy the Perks Freely..
 

Rosh1984

New member
I think so its not pay cut which is more important but the important thing is that whether they actual deserve the hefty pay. Their pay / remuneration and huge amt of bonus should be linked with the performance of the company and its (company) contribution in total sector and economy development. Anyways stringent action has already been taken by US govt. Indian govt and central bank (RBI) are also not behind in taken steps on the pay package of CEO and recently they have decided to evaluate and credit rate the pay and bonus of all the major companies CEO. Lets wait if the outcome of such action is fruitful for the overall development of the global village.
 

MBSTORM

New member
The action need not be a permanent and binding one..it could be a cut for a short period of time...This ould prove more feasible then cutting those of the employees ..who are essentially the backbone of any firm...
 

sumairshakir

New member
I've read quite a bit about this and the only remotely valid argument i have read is due to the scarcity of such CEO talent the pay is so High.

I feel this is some horse **** its basically a good old rich boys club and they want to keep it that way. only 1 out of a 1000 CEOs are actually earning their keep.
 

jaideepsaini

New member
hey! depends on ceo's performance.... ceo must be compensated on the basis of rise in prices of shares, incease in returns... ROI must be more than 100%..
 

ramsharma88888

Par 100 posts (V.I.P)
CEO's should be obliged to take a pay cut as a moral responsibility along with all the other employees however if a new external CEO is to be appointed pay cuts will not help attract quality talent
 

m.rajni

New member
THEY ARE IN THE POST DUE TO THIER PERFORMANCE SO THEY SHOULD GET WHAT THEY DESERVE IF THEY GET MORE, THERE MUST BE A RATE CUT. SIMPLY SAYING IT MUST BE MEASURED ON THEIR PERFORMANCE
 
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