Tuesday, April 21, 2009


Financial Times:

[A]ny honest observer knows that executive pay in America is, in fact, set largely by rigged systems today. What is needed is a new group of “CEOs against CEO greed” to model better behaviour and speak out against these scams.

"CEO greed" has no meaning except in relation to large shareholders. Executives are supposed to manage productive enterprise on behalf of the wealthy investors who pony up the dough for them to do so. Simply pocketing the cash and walking away as the ship goes down in flames abrogates this compact and ultimately harms the super rich who can't escape.

Hence the concept of "CEO greed" -- i.e., greed that is dysfunctional to the institution -- and the heightened profile it presently enjoys.

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