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The webpage is an op-ed by Fred Zimmerman, a professor emeritus of engineering and management at the University of St. Thomas, published on the Star Tribune. Zimmerman criticizes the current level of executive compensation, calling it "offensive and unnecessary." He reflects on his experience serving on company boards since 1968, stating that although there are excellent CEOs, they are all paid excessively.
He uses Boeing as an example, highlighting their outgoing CEO's earnings of $32.8 million in 2023 and $22.6 million in 2022, despite the company's financial losses and negative net worth. Zimmerman suggests that such executives should face "reasonable clawbacks" rather than receiving high compensation.
Zimmerman also shares an anecdote of a company executive who turned down a bonus and proposed a corporate sharing programme to benefit all employees. He expresses the need to critique our compensation systems but clarifies that he doesn't support government mandates. Instead, he encourages corporate directors to reconsider their responsibilities and the attributes needed to keep their companies viable.
Zimmerman concludes that the problem with excessive executive compensation is its spread, causing a rise in overall costs that can affect a company's competitive position. He challenges the argument that high compensation is necessary to attract talent, stating that the best executives are more interested in a sense of purpose and do not need the money.
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The webpage is an op-ed by Fred Zimmerman, a professor emeritus of engineering and management at the University of St. Thomas, published on the Star Tribune. Zimmerman criticizes the current level of executive compensation, calling it "offensive and unnecessary." He reflects on his experience serving on company boards since 1968, stating that although there are excellent CEOs, they are all paid excessively. He uses Boeing as an example, highlighting their outgoing CEO's earnings of $32.8 million in 2023 and $22.6 million in 2022, despite the company's financial losses and negative net worth. Zimmerman suggests that such executives should face "reasonable clawbacks" rather than receiving high compensation. Zimmerman also shares an anecdote of a company executive who turned down a bonus and proposed a corporate sharing programme to benefit all employees. He expresses the need to critique our compensation systems but clarifies that he doesn't support government mandates. Instead, he encourages corporate directors to reconsider their responsibilities and the attributes needed to keep their companies viable. Zimmerman concludes that the problem with excessive executive compensation is its spread, causing a rise in overall costs that can affect a company's competitive position. He challenges the argument that high compensation is necessary to attract talent, stating that the best executives are more interested in a sense of purpose and do not need the money.
SummaryBot via The Internet
Oct. 9, 2024, 3:13 p.m.