Equal Pay
I really like the idea of equal pay for equal work but it can be a tough concept to wrap your arms around and complicated. The bigger issue is that the whole process of compensation is very opaque at best.
Why should one left fielder for the Cubs get paid more than the second baseman. Why don't they just set a number and divide it by the number of players on the team as a base figure and then give bonuses for wins, and various other categories like innings played, innings pitched, singles, doubles, triples, home runs... It isn't done like this.
Authors get paid for books that they sell, but it is hard to get the first one sold, and after that the idea of quality can go out the window and you may be getting paid for what you did, rather than what you do today.
I remember an accountant friend that once said over beers that it had been quite a while since he had done any accounting work of any substance and that he was pretty much a rainmaker and a very well paid one. His days were filled with meetings and reports that were filled with weasel worded qualifications and findings, and notes that covered the partner's asses, should things blow up in the future. His clients already knew the drill and they paid a great deal for audits and consulting work.
The guy was connected. Eventually, it was time for him to retire and as a partner in one of the "Big 5" accounting firms he was able to become a professional board member. His name was not unlike one of those names you seem getting elected to serve on boards of public companies if you own stocks. The people usually have had long and successful careers and if they serve on the compensation committee they approve mega salaries for CEO's, often not based on results but on what other companies of similar size are paying.
Was I a little jealous, yes, but I've come to understand something that is important as things unfold these days. The wealthy take care of themselves and other wealthy people and will do what ever is necessary to fix things in a way the outcome is hardly ever in doubt.
In protest, I almost never vote my shares in favor of the board up for election at annual meetings.
Why should one left fielder for the Cubs get paid more than the second baseman. Why don't they just set a number and divide it by the number of players on the team as a base figure and then give bonuses for wins, and various other categories like innings played, innings pitched, singles, doubles, triples, home runs... It isn't done like this.
Authors get paid for books that they sell, but it is hard to get the first one sold, and after that the idea of quality can go out the window and you may be getting paid for what you did, rather than what you do today.
I remember an accountant friend that once said over beers that it had been quite a while since he had done any accounting work of any substance and that he was pretty much a rainmaker and a very well paid one. His days were filled with meetings and reports that were filled with weasel worded qualifications and findings, and notes that covered the partner's asses, should things blow up in the future. His clients already knew the drill and they paid a great deal for audits and consulting work.
The guy was connected. Eventually, it was time for him to retire and as a partner in one of the "Big 5" accounting firms he was able to become a professional board member. His name was not unlike one of those names you seem getting elected to serve on boards of public companies if you own stocks. The people usually have had long and successful careers and if they serve on the compensation committee they approve mega salaries for CEO's, often not based on results but on what other companies of similar size are paying.
Was I a little jealous, yes, but I've come to understand something that is important as things unfold these days. The wealthy take care of themselves and other wealthy people and will do what ever is necessary to fix things in a way the outcome is hardly ever in doubt.
In protest, I almost never vote my shares in favor of the board up for election at annual meetings.
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