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Nothing over a million dollars : Comments
By Valerie Yule, published 14/12/2010CEOs are paid far too much, especially when they oversee banking disasters: it is time they were reined in.
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Foyle, see it this way. If the CEO of a bank gets it wrong, billions
are at stake, not mere hundreds of millions.
A bank like say Westpac, has 600 billion on its books. That is
six hundred thousand million $!
That is a huge responsibility. If they judge a few corporate loans
wrong, woosh, its gone. It has happened before in Australia.
For that kind of responsibility, you really want to hire the best
brains around. If you have shares in the bank or money in the bank,
you want to know its in the best, most sensible hands.
So wether you pay that person 1 million or 10 million, it has no
effect on the bottom line. The decisions which that person makes,
has billions of $ of effect on the bottom line.
Take a look at the ANZ, which appointed Mike Smith as the new CEO.
Smith was lured from Asia, where he'd had a great deal of experience.
Smith has already had a big effect on the ANZ share price, with his
new directions and policies. He would not have come to Australia,
for a gold watch.
The real problem is, finding exceptional CEOs. They are rare. So
when you do find one, hang onto him/her.