CEOs’ pay climbed before layoffs at tech giants like Alphabet and Microsoft
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CEOs’ pay climbed before layoffs at tech giants like Alphabet and Microsoft
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Re: CEOs’ pay climbed before layoffs at tech giants like Alphabet and Microsoft
#2Deciding to layoff or not is a complex decision. Here the article only looks at Companies that did layoff. Although more difficult, would be interesting to also look at companies that also made this decision and decided not to layoff. Essentially widening the group of Companies evaluated to one step before the layoffs/no layoffs decision is made.
Re: CEOs’ pay climbed before layoffs at tech giants like Alphabet and Microsoft
#3CEOs pay is tied to the stock price. They will do whatever it takes to boost the stock price, until they are out with a golden parachute. From their perspective, the business is all about boosting the stock price. It doesn't matter if the boost comes from innovation, or from polluting the planet, or from unscrupulous addictive practices, or from culling the employees.
Employees are merely, an often undesired, side-effect in the business of boosting stock prices.
Re: CEOs’ pay climbed before layoffs at tech giants like Alphabet and Microsoft
#4CEOs pay is tied to the stock price. They will do whatever it takes to boost the stock price, until they are out with a golden parachute. From their perspective, the business is all about boosting the stock price. It doesn't matter if the boost comes from innovation, or from polluting the planet, or from unscrupulous addictive practices, or from culling the employees. Employees are merely, an often undesired, side-ef…
Executive stock prices should vest at the first of 25 years from the date earned or 10 years after they've left the company. That would encourage long term strategies rather than pump and dump.
Re: CEOs’ pay climbed before layoffs at tech giants like Alphabet and Microsoft
#5CEOs pay is tied to the stock price. They will do whatever it takes to boost the stock price, until they are out with a golden parachute. From their perspective, the business is all about boosting the stock price. It doesn't matter if the boost comes from innovation, or from polluting the planet, or from unscrupulous addictive practices, or from culling the employees. Employees are merely, an often undesired, side-ef…
Executive stock prices should vest at the first of 25 years from the date earned or 10 years after they've left the company. That would encourage long term strategies rather than pump and dump.
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Re: CEOs’ pay climbed before layoffs at tech giants like Alphabet and Microsoft
#6Deciding to layoff or not is a complex decision. Here the article only looks at Companies that did layoff. Although more difficult, would be interesting to also look at companies that also made this decision and decided not to layoff. Essentially widening the group of Companies evaluated to one step before the layoffs/no layoffs decision is made.
Is there really such a thing as to non-decide? This seems to me a pretty impossible study to do.
Re: CEOs’ pay climbed before layoffs at tech giants like Alphabet and Microsoft
#7CEOs pay is tied to the stock price. They will do whatever it takes to boost the stock price, until they are out with a golden parachute. From their perspective, the business is all about boosting the stock price. It doesn't matter if the boost comes from innovation, or from polluting the planet, or from unscrupulous addictive practices, or from culling the employees. Employees are merely, an often undesired, side-ef…
Executive stock prices should vest at the first of 25 years from the date earned or 10 years after they've left the company. That would encourage long term strategies rather than pump and dump.
That would certainly be one way of attaining long term vision.
But who will enforce this requirement? Only pension funds and other large shareholders have any (and often impractical) leverage over the board C-suite. Wall-street shareholders demand faster growth until they themselves can exit out. They don't care about the business or the services or the employees. They want a high growth return, year-over-year until their own investment carry continues to exist.
Re: CEOs’ pay climbed before layoffs at tech giants like Alphabet and Microsoft
#8CEOs pay is tied to the stock price. They will do whatever it takes to boost the stock price, until they are out with a golden parachute. From their perspective, the business is all about boosting the stock price. It doesn't matter if the boost comes from innovation, or from polluting the planet, or from unscrupulous addictive practices, or from culling the employees. Employees are merely, an often undesired, side-ef…
And frankly layoffs had almost no effect on their stock prices. Announcing new products, even if quite half-baked AI efforts, had much bigger impact on stock prices than layoffs.
Re: CEOs’ pay climbed before layoffs at tech giants like Alphabet and Microsoft
#9CEOs pay is tied to the stock price. They will do whatever it takes to boost the stock price, until they are out with a golden parachute. From their perspective, the business is all about boosting the stock price. It doesn't matter if the boost comes from innovation, or from polluting the planet, or from unscrupulous addictive practices, or from culling the employees. Employees are merely, an often undesired, side-ef…
And frankly layoffs had almost no effect on their stock prices. Announcing new products, even if quite half-baked AI efforts, had much bigger impact on stock prices than layoffs.
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Re: CEOs’ pay climbed before layoffs at tech giants like Alphabet and Microsoft
#10CEOs pay is tied to the stock price. They will do whatever it takes to boost the stock price, until they are out with a golden parachute. From their perspective, the business is all about boosting the stock price. It doesn't matter if the boost comes from innovation, or from polluting the planet, or from unscrupulous addictive practices, or from culling the employees. Employees are merely, an often undesired, side-ef…
That is a very narrow and frankly sweepingly incorrect description of "CEOs" or "companies". They're not all the same. I for one (alongside many other investors) carefully study incentive programs and compensation oversight executed by the board of directors. There are many thoughtful companies (and CEOs) who e.g. align over very long-term targets, such as '5 year return on capital". Investors have found out a long time ago that incentivizing by short-term measures such as share price (or revenues, or EPS) can bring about very adverse long-term investing outcomes.