Executive Compensation Quotes

Managers receiving hundreds of thousands a year—and setting their compensation for themselves—are not being paid wages, they are appropriating surplus value in the guise of wages.

A thousand miles away, justice is being served—but justice, Saffy thinks, is supposed to feel like more. Justice is supposed to be an anchor, an answer. She wonders how a concept like justice made it into the human psyche, how she ever believed that something so abstract could be labeled, meted out. Justice does not feel like compensation. It does not even feel like satisfaction.

Shane’s dad stopped the van,” Claire said. “He took Monica as a hostage.” For a second, neither one of them moved, and then Eve whooped and held up her hand for a high five. Claire just stared at her, and Eve compensated by clapping both hands over her head. “Yesssss!” she said, and did a totally geeky victory dance. “Couldn’t have happened to a nicer psycho!” “Hey!” Claire yelled, and Eve froze in midcelebration. It was stupid, but Claire was angry; she knew Eve was right, knew she had no reason at all to think Monica was ever going to be anything but a gigantic pain in the ass, but… “Shane’s dad’s going to burn her if they go through with the execution. He has a blowtorch.” The glee dropped out of Eve’s expression. “Oh,” she said. “Well…still. Not like she didn’t ask for it. Karma’s a bitch, and so am I.

thought then that decent, intelligent, and experienced managers would automatically make rational business decisions. But I learned over time that isn’t so. Instead, rationality frequently wilts when the institutional imperative comes into play. For example: (1) As if governed by Newton’s First Law of Motion, an institution will resist any change in its current direction; (2) Just as work expands to fill available time, corporate projects or acquisitions will materialize to soak up available funds; (3) Any business craving of the leader, however foolish, will be quickly supported by detailed rate-of-return and strategic studies prepared by his troops; and (4) The behavior of peer companies, whether they are expanding, acquiring, setting executive compensation or whatever, will be mindlessly imitated.

He says, "It's just a hat." But it's not just a hat. It makes Jess think of racism and hatred and systemic inequality, and the Ku Klux Klan, and plantation-wedding Pinterest boards, and lynchings, and George Zimmerman, and the Central Park Five, and redlining, and gerrymandering and the Southern strategy, and decades of propaganda and Fox News and conservative radio, and rabid evangelicals, and rape and pillage and plunder and plutocracy and money in politics and the dumbing down of civil discourse and domestic terrorism and white nationalists and school shootings and the growing fear of a nonwhite, non-English-speaking majority and the slow death of the social safety net and conspiracy theory culture and the white working class and social atomism and reality television and fake news and the prison-industrial complex and celebrity culture and the girl in fourth grade who told Jess that since she--Jess--was "naturally unclean" she couldn't come over for birthday cake, and executive compensation, and mediocre white men, and the guy in college who sent around an article about how people who listen to Radiohead are smarter than people who listen to Missy Elliott and when Jess said "That's racist" he said "No,it's not," and of bigotry and small pox blankets and gross guys grabbing your butt on the subway, and slave auctions and Confederate monuments and Jim Crow and fire hoses and separate but equal and racist jokes that aren't funny and internet trolls and incels and golf courses that ban women and voter suppression and police brutality and crony capitalism and corporate corruption and innocent children, so many innocent children, and the Tea Party and Sarah Palin and birthers and flat-earthers and states' rights and disgusting porn and the prosperity gospel and the drunk football fans who made monkey sounds at Jess outside Memorial Stadium, even though it was her thirteenth birthday, and Josh--now it makes her think of Josh.

As I developed as a CEO, I found two key techniques to be useful in minimizing politics. 1. Hire people with the right kind of ambition. The cases that I described above might involve people who are ambitious but not necessarily inherently political. All cases are not like this. The surest way to turn your company into the political equivalent of the U.S. Senate is to hire people with the wrong kind of ambition. As defined by Andy Grove, the right kind of ambition is ambition for the company’s success with the executive’s own success only coming as a by-product of the company’s victory. The wrong kind of ambition is ambition for the executive’s personal success regardless of the company’s outcome. 2. Build strict processes for potentially political issues and do not deviate. Certain activities attract political behavior. These activities include:   Performance evaluation and compensation   Organizational design and territory   Promotions Let’s examine each case and how you might build and execute a process that insulates the company from bad behavior and politically motivated outcomes.

the increase in very high incomes and very high salaries primarily reflects the advent of “supermanagers,” that is, top executives of large firms who have managed to obtain extremely high, historically unprecedented compensation packages for their labor.

When people scratch their heads and wonder how it can be that the stock market is booming and executive compensation is at an all-time high but the overall economy is less dynamic and workers are not benefiting, look no further than the trillions of dollars in stock buybacks.

In other industries, such as media and financial services, a large percentage of executive compensation is doled out in annual performance bonuses. These short-term goals (and yes, a year is definitely short term) can generate behaviors that are detrimental to creating long-term value.

Even the highest compensation is a tiny fraction of the value created by many business and technical innovations. The problem with executive compensation in the United States is not with this idea. The problem is that in many cases the high compensation levels persist even when innovations do not occur and reactions to the innovations of others are slow.

Nearly all large healthcare organizations make their top executives extremely rich, a perverse incentive to profit off the sick.

Based on their implicit and explicit memories of unmet childhood needs, many narcissists develop the notion that such needs will never be met later on in life. This fear is at the root of the narcissist’s flimsy and unanimated attachments to others. He compensates for the fear of not having his needs met through a well-executed excessively autonomous style. This combination of fear and overcompensation also leads to a lack of intimacy with himself, a void of self-knowing.

Chess is 99 per cent tactics. If you don’t pay attention to the tactics, no strategy you devise will fetch you rewards. Strategy can’t compensate for mistakes in execution. If you persist with neat execution, it will keep you in the game even if you’re not able to follow a broader strategy. Strategy without tactics, though, falls at the first hurdle. For me, strategizing for a game isn’t about putting together a specific manoeuvre of pieces. It’s about thinking what my opponent could be aiming for, knowing what my objectives are and then preparing to get what I want out of the game.

Those involved in mental as opposed to physical effort or who carry the responsibilities of management are presumed to require a higher payment for their submission to the purposes of organization than those who render only physical or manual service, however adept or talented that may be. This is because there is profound difference in the nature and extent of the submission that is made. The person on the shop floor or its equivalent gives more or less diligent and deft physical effort for a specified number of hours a day. Beyond that nothing in principle--not thought, certainly not conformity of speech or behavior--is expected. Of the high corporate executive a more complete submission to the purposes of the organization is usually required. He (or she) must speak and also think well of the aims of the enterprise; he may never in public and not wisely in private raise doubt as to the depth and sincerity of his own commitment. Many factors determine his large, often very large, compensation, including the need to pay for the years of preparation, for the considerable intelligence that is requires, for the responsibility that is carried, and for the alleged risks of high position. As a practical matter, his rate of pay is also influenced by the significant and highly convenient role the executive plays in establishing it; much that accrues to the senior corporate executive is in response to his own inspired generosity. But there is also payment for the comprehensive submission of his individual personality to that of the corporation. It is no slight thing to give up one's self and self-expression to the collective personality of one's employer.

In 1980, the compensation of the average chief executive officer was forty-two times that of the average worker; by the year 2004, the ratio had soared to 280 times that of the average worker (down from an astonishing 531 times at the peak in 2000). Over the past quarter-century, CEO compensation measured in current dollars rose nearly sixteen times over , while the compensation of the average worker slightly more than doubled. Measured in real(1980) dollars, however, the compensation of the average worker rose just 0.3 percent per year, barely enough to maintain his or her standard of living. Yet CEO compensation rose at a rate of 8.5 percent annually, increasing by more than seven times in real terms during the period. The rationale was that these executives had "created wealth" for their shareholders. But were CEOs actually creating value commensurate with this huge increase in compenstion? Certainly the average CEO was not. In real terms, aggregate corporate profits grew at an annual rate of just 2.9 percent, compared to 3.1 percent for our nation's economy, as represented by the Gross Domestic Product. How that somewhat dispiriting lag can drive average CEO compensation to a cool 9.8 million in 2004 is one of the great anomalies of the age.

The 21st century has certainly seen the rape of women in wartime, but it has long been treated as an atrocious war crime, which most armies try to prevent and the rest deny and conceal. But for the heroes of the Iliad, female flesh was a legitimate spoil of war: women were to be enjoyed, monopolized, and disposed of at their pleasure. Menelaus launches the Trojan War when his wife, Helen, is abducted. Agamemnon brings disaster to the Greeks by refusing to return a sex slave to her father, and when he relents, he appropriates one belonging to Achilles, later compensating him with twenty-eight replacements. Achilles, for his part, offers this pithy description of his career: “I have spent many sleepless nights and bloody days in battle, fighting men for their women.”11 When Odysseus returns to his wife after twenty years away, he murders the men who courted her while everyone thought he was dead, and when he discovers that the men had consorted with the concubines of his household, he has his son execute the concubines too.

In hunter-gatherer terms, these senior executives are claiming a disproportionate amount of food simply because they have the power to do so. A tribe like the !Kung would not permit that because it would represent a serious threat to group cohesion and survival, but that is not true for a wealthy country like the United States. There have been occasional demonstrations against economic disparity, like the Occupy Wall Street protest camp of 2011, but they were generally peaceful and ineffective. (The riots and demonstrations against racial discrimination that later took place in Ferguson, Missouri, and Baltimore, Maryland, led to changes in part because they attained a level of violence that threatened the civil order.) A deep and enduring economic crisis like the Great Depression of the 1930s, or a natural disaster that kills tens of thousands of people, might change America’s fundamental calculus about economic justice. Until then, the American public will probably continue to refrain from broadly challenging both male and female corporate leaders who compensate themselves far in excess of their value to society. That

The most consistent execution of this project is to be found in the Letter to the Hebrews, which connects the death of Jesus on the Cross with the ritual and theology of the Jewish feast of reconciliation and expounds it as the true cosmic reconciliation feast. The train of thought in the letter could be briefly summarized more or less as follows: All the sacrificial activity of mankind, all attempts to conciliate God by cult and ritual—and the world is full of them—were bound to remain useless human work, because God does not seek bulls and goats or whatever may be ritually offered to him. One can sacrifice whole hecatombs of animals to God all over the world; he does not need them, because they all belong to him anyway, and nothing is given to the Lord of All when such things are burned in his honor. “I will accept no bull from your house, nor he-goat from your folds. For every beast of the forest is mine, the cattle on a thousand hills. I know all the birds of the air, and all that moves in the field is mine. If I were hungry, I would not tell you; for the world and all that is in it is mine. Do I eat the flesh of bulls, or drink the blood of goats? Offer to God a sacrifice of thanksgiving. . . .” So runs a saying of God in the Old Testament (Ps 50 [49]:9-14). The author of the Letter to the Hebrews places himself in the spiritual line of this and similar texts. With still more conclusive emphasis he stresses the fruitlessness of ritual effort. God does not seek bulls and goats but man; man’s unqualified Yes to God could alone form true worship. Everything belongs to God, but to man is lent the freedom to say Yes or No, the freedom to love or to reject; love’s free Yes is the only thing for which God must wait—the only worship or “sacrifice” that can have any meaning. But the Yes to God, in which man gives himself back to God, cannot be replaced or represented by the blood of bulls and goats. “For what can a man give in return for his life”, it says at one point in the Gospel (Mk 8:37). The answer can only be: There is nothing with which he could compensate for himself. But

I believe that social media, and the internet as a whole, have negatively impacted our ability to both think long-term and to focus deeply on the task in front of us. It is no surprise, therefore, that Apple CEO, Steve Jobs, prohibited his children from using phones or tablets—even though his business was to sell millions of them to his customers! The billionaire investor and former senior executive at Facebook, Chamath Palihapitiya, argues that we must rewire our brain to focus on the long term, which starts by removing social media apps from our phones. In his words, such apps, “wire your brain for super-fast feedback.” By receiving constant feedback, whether through likes, comments, or immediate replies to our messages, we condition ourselves to expect fast results with everything we do. And this feeling is certainly reinforced through ads for schemes to help us “get rich quick”, and through cognitive biases (i.e., we only hear about the richest and most successful YouTubers, not about the ones who fail). As we demand more and more stimulation, our focus is increasingly geared toward the short term and our vision of reality becomes distorted. This leads us to adopt inaccurate mental models such as: Success should come quickly and easily, or I don’t need to work hard to lose weight or make money. Ultimately, this erroneous concept distorts our vision of reality and our perception of time. We can feel jealous of people who seem to have achieved overnight success. We can even resent popular YouTubers. Even worse, we feel inadequate. It can lead us to think we are just not good enough, smart enough, or disciplined enough. Therefore, we feel the need to compensate by hustling harder. We have to hurry before we miss the opportunity. We have to find the secret that will help us become successful. And, in this frenetic race, we forget one of the most important values of all: patience. No, watching motivational videos all day long won’t help you reach your goals. But, performing daily consistent actions, sustained over a long period of time will. Staying calm and focusing on the one task in front of you every day will. The point is, to achieve long-term goals in your personal or professional life, you must regain control of your attention and rewire your brain to focus on the long term. To do so, you should start by staying away from highly stimulating activities.

In Andhra, farmers fear Naidu’s land pool will sink their fortunes Prasad Nichenametla,Hindustan Times | 480 words The state festival tag added colour to Sankranti in Andhra Pradesh this time. But the hue of happiness was missing in 29 villages along river Krishna in Guntur district. The villagers knew it was their last Sankranti, a harvest festival celebrated to seek agricultural prosperity. For in two months, more than 30,000 acres of fertile farmland would be acquired for a brand new capital planned in collaboration with Singapore. The Nara Chandrababu Naidu government went about the capital project by setting aside the Centre’s land acquisition act and drawing up a compensation package for land-owning and tenant farmers and labourers. Many are opposed to it, and are not keen on snapping their centuries-old bond with their land and livelihood. In Penumaka village, Nageshwara Rao, 50, fears the future as he does not possess a tenancy certificate that could have brought some relief under the compensation package. “The entire village is against land-pooling but we hear the government is adamant,” Rao says, referring to municipal minister P Narayana’s alleged assertion that land would be taken with or without the farmers’ consent. Narayana is supervising the land-pooling process. “Naidu says he would give us Rs 50,000 per year in lieu of annual crops. We earn that much in a month here,” villager Meka Koti Reddy says. To drive home the point, locals in Undavalli village nearby have put up a board asking officials to keep off their lands that produce three crops a year. Unlike other parts of Andhra Pradesh, the water-rich land here is highly productive yielding 200 varieties of crops. Some farmers are also suspicious about the compensation because Naidu is yet to deliver on the loan-waiver promise. They are now weighing legal options besides seeking Prime Minister Narendra Modi’s intervention to retain their land. While the villagers opposing land-pooling are allegedly being backed by Jaganmohan Reddy’s YSR Congress Party, those belonging to the Kamma community — the support base for Naidu’s Telugu Desam Party — are said to be cooperative.  It is also believed that Naidu chose this location over others suggested by experts to primarily benefit the Kamma industrialists who own large swathes of land in Krishna and Guntur districts. But even the pro-project villagers cannot help feel insecure. “We are clueless about where our developed area would be. What if the project is not executed within Naidu’s tenure? Is there a legal recourse?” Idupulapati Rambabu of Mandadam says. This is despite Naidu’s assurance on January 1 at nearby Thulluru, where he launched the land-pooling process, asking farmers to give land without any apprehension. He said the deal in its present form would make them richer than him in a decade. “We are not building a mere city but a hub of economic activity loaded with superior infrastructure that is aimed at generating wealth. This would be a win-win situation for all,” Naidu tells HT. As of now, villages like Nelapadu struggling with low soil fertility seem to be winning from the package.

The 401(k) was originally supplementary in nature, a way for highly compensated executives to get a tax break on money set aside for retirement.

Business Owner Planning Business owners have additional and complex Retirement Planning needs. Counting only on the sale of your business requires tremendous luck and success. If business owners consider the business as simply one asset among many, then they should seriously consider additional assets such as: -Executive Bonus Arrangements -Nonqualified deferred compensation plans -Qualified retirement plans -General investment portfolio Motto for Business Owner Planning As I look back on thirteen years of entrepreneurship, I can see that the best and smartest thing to do is to have a plan with the end in mind and you in mind. The time still goes by and time is expensive. That sentence is really a whole book and you should or will understand sooner than later, hopefully. That would have looked like business succession planning. Proper business succession planning requires sound preparation in order to have a smooth and equitable transition. Financial, tax and legal planning are all necessary for a success.

Republicans’ cultural and racial appeals. Union membership, once a bulwark for Democrats in states like West Virginia, declined. Being part of a union is an important part of someone’s personal identity. It helps shape the way you view the world and think about politics. When that’s gone, it means a lot of people stop identifying primarily as workers—and voting accordingly—and start identifying and voting more as white, male, rural, or all of the above. Just look at Don Blankenship, the coal boss who joined the protest against me on his way to prison. In recent years, even as the coal industry has struggled and workers have been laid off, top executives like him have pocketed huge pay increases, with compensation rising 60 percent between 2004 and 2016. Blankenship endangered his workers, undermined their union, and polluted their rivers and streams, all while making big profits and contributing millions to Republican candidates. He should have been the least popular man in West Virginia even before he was convicted in the wake of the death of twenty-nine miners. Instead, he was welcomed by the pro-Trump protesters in Williamson. One of them told a reporter that he’d vote for Blankenship for President if he ran. Meanwhile, I pledged to strengthen the laws to protect workers and hold bosses like Blankenship accountable—the fact that he received a jail sentence of just one year was appalling—yet I was the one being protested.

In many companies, managers’ pay is contingent upon the efficiency of their staff as measured by revenue per employee hour. Scheduling software helps them boost these numbers and their own compensation. Even when executives tell managers to loosen up, they often resist. It goes against everything they’ve been taught. What’s more, at Starbucks, if a manager exceeds his or her “labor budget,” a district manager is alerted, said one employee. And that could lead to a write-up. It’s usually easier just to change someone’s schedule, even if it means violating the corporate pledge to provide one week’s notice.

You killed a Christian? Fine. But if the victim had been a Muslim. . . The rules for restitution for wrongful death are also illuminating for Infidels. The Koran (2:178) establishes a law of retaliation (qisas) for murder: equal recompense must be given for the life of the victim, which can take the form of blood money (diyah): a payment to compensate for the loss suffered. In Islamic law (Sharia), the amount of compensation varies depending on the identity of the victim. ‘Umdat al-Salik (Reliance of the Traveller), a Sharia manual that Cairo’s prestigious Al-Azhar University certifies as conforming to the “practice and faith of the orthodox Sunni community,” says that the payment for killing a woman is half that to be paid for killing a man. Likewise, the penalty for killing a Jew or Christian is one-third that paid for killing a male Muslim.1 The Iranian Sufi Sheikh Sultanhussein Tabandeh, one of the architects of the legal codes of the Islamic Republic of Iran, explains that punishments in Iran for other crimes differ as well, depending on whether the perpetrator is a Muslim. If a Muslim “commits adultery,” Tabandeh explains, “his punishment is 100 lashes, the shaving of his head, and one year of banishment.” (He is referring, of course, to a Muslim male; a Muslim female would in all likelihood be sentenced to be stoned to death.) “But if the man is not a Muslim,” Tabandeh continues, “and commits adultery with a Muslim woman his penalty is execution.”   Bible vs. Koran “Muhammad is the messenger of Allah. And those with him are hard against the disbelievers and merciful among themselves.” —Koran 48:29 “So whatever you wish that men would do to you, do so to them.” —Matthew 7:12 Furthermore, if a Muslim kills a Muslim, he is to be executed, but if he kills a non-Muslim, he incurs a lesser penalty: “If a Muslim deliberately murders another Muslim he falls under the law of retaliation and must by law be put to death by the next of kin. But if a non-Muslim who dies at the hand of a Muslim has by lifelong habit been a non-Muslim, the penalty of death is not valid. Instead the Muslim murderer must pay a fine and be punished with the lash.

The obsession with quarterly earnings came about because personal compensation was increasingly tied to what happened to the share price. Improving market capitalization became the number one job for senior executives. Success would lead to personal wealth. Sadly,

It is simply a manifestation of the “first who” principle: It’s not how you compensate your executives, it’s which executives you have to compensate in the first place.

Remember that transactions have a gas fee, which varies based on the complexity of the transaction. When, for example, ETH is used to compensate a miner for including and executing a transaction, the gas fee is relatively low. Longer or more data-intensive transactions cost more gas. If a transaction reverts for any reason, or runs out of gas, the sender forfeits all gas used until that point. Forfeiture protects the miners who, without this provision, could fall prey to large volumes of failed transactions for which they would not receive payment.

They were strong. Fierce.” I nodded, her eyes holding mine. And in her words I saw the promise. The memory. The equality of women in the tribe. “In war,” Aggie said, her voice going softer, “it was important that the losses in battle be compensated. If warriors of the tribe were killed, no matter if our people won a battle or lost, those warriors had value that had to be replaced in some way. After a battle, the Tsalagi would take the same number of prisoners, scalps, or lives that they lost.” Aggie paused, watching my face. Even more gently, she said, “Women led in the execution of prisoners. In the torture of prisoners. In the buying and selling of prisoners as slaves to recoup the financial cost of war. In the adoption of prisoners into the tribe. Such was the right and responsibility of women. As mothers. As widows. As warriors in their own right. “There was no one more fierce than a woman avenging her husband or son.

In our research, we found no systematic pattern linking executive compensation to the process of companies going from good to great. Financial incentives don’t—indeed cannot—cause companies to achieve greatness, for the simple reason that you cannot turn the wrong people into the right people with money. After all, if someone needs financial incentives to perform at a high level, he or she lacks the intense inner drive, the productive neurosis, required to do great things.

Executives receive compensation. They’re assumed to have no intrinsic motivation to serve society; instead, they demand to be compensated for doing so. You get compensation for an injury, for something unpleasant. Leaders receive reward. Reward is earned for something intrinsically desirable, like finding a missing person.

Traits of Companies That Attract Intrapreneurs 1. Their executives are comfortable taking calculated risks and encouraging creativity. 2. Their compensation plan incentivizes innovation and outstanding performers. 3. Their executives play offense (improve) instead of just playing defense (cover their asses). 4. Their executives elevate potential stars rather than hold them back. 5. Their executives actively seek out ideas from all layers of the organization. 6. Their executives actively look for young talent to keep the company vibrant and innovative.

Boardsi provides a web-based network which connects companies with the right executives to suit its needs. The process of creating a board becomes seamless and efficient instead of laborious. Boardsi’s CEO and Co-Founder, Martin Rowinski was listed among the 10 Best CEOs to Watch in 2021 by DotCom Magazine. The company prides itself on providing the largest curated collection of compensated board work in the world to its executive candidates.

A few weeks later, the United States Steel Corporation was formed. It was a testament to the power of Morgan, and the entirely unregulated securities market, that he could go from a handshake to a public company in less than eight weeks. As the syndicate manager, Morgan’s firm deposited $25 million to execute the mechanics of the transaction. Morgan’s role was to organize the consolidation, sell shares to the public, and serve on its board of directors. Morgan himself was not a major shareholder of any of the consolidations he sponsored or underwrote. His compensation generally came in the form of fees for arranging these massive transactions. U.S. Steel combined every major steel consolidation of the previous three years, along with Carnegie Steel, into a superconsolidation. On March 29, when the shares were brought to market, U.S. Steel became the first company to be valued at over $1 billion.

Blood & Sand by Stewart Stafford Enduring to be burned, bound, beaten, And to die by the sword if necessary; Verus and Priscus entered the arena, To stain Colosseum sand with blood. Emperor Titus drained Nero's lake, Built the vast Flavian Amphitheatre, Panacea to the idle citizens of Rome, Symbol of his beneficence and might. Priscus, far from his Germanian home, Fighting within a symbol of Rome's power, Which ravaged his life and fatherland, For them to decide if he is free or dies. Verus, the hulking, bullish Murmillo; Trained to deliver heavy punishment, Priscus - lightly-armed, agile Thracian; Primed to avoid his rival's huge blows. Titus showed he was Nero's antithesis; No hoarding of tracts of primo Roma, In a profligate orgy of narcissistic pride, Nor taking his own life to escape execution. Domitian, the brother of Titus, watched in envy, The emperor-in-waiting who favoured Verus, And the direct Murmillo style of fighting, Titus favoured Thracian counter-punching. Aware of the patriarchal fraternity's preferences, The gathering looked on in fascinated awe, As their champions of champions clashed, Deciding who was the greatest gladiator of all. Titus had stated there would be no draw; One would win, and one would perish, A rudis freedom staff the survivor's trophy, Out the Porta Sanavivaria - the Gate of Life. One well aware of the other, combat began, Scared eyes locked behind helmeted grilles, Grunts and sweat behind shield and steel, Roars and gasps of the clustered chorus. For hour after hour, they attacked and feinted, Using all their power, skill and technique, Nothing could keep them from a stalemate; The warriors watered and slightly rested. The search for the coup de grâce went on, Until both men fell, in dusty exhaustion, Each raised a finger, in joint submission, Equals on death's stage yielded in unison. Titus faced a dilemma; mercy or consistency? Please the crowd, but make them aware, Of his Damoclean life-and-death sword, Over every Roman and slave in the empire. Titus cleaved the Rudis into a dual solution; Unable to beat the other, both won and lived, Limping, scarred heroes of baying masses, None had ever seen a myth form before them. It was Romulus fighting Remus in extremis, Herculean labours of a sticky, lethal afternoon, In the end, nothing could separate these brothers; Victors united as Castor and Pollux in Gemini. For life and limb on Rome's vast stage, Symbiotic compensation of adulation's rage. Stewart Stafford, 2023. All rights reserved

At the time, my staff and I had been too consumed with trying to contain the post-Lehman panic to even consider whether we could do anything about executive compensation.

it is bewitching to watch both men [Burton and Gielgud] struggle for Shakespeare's meaning while they squirm as individuals beneath the weight of their own psychologies. This is the problem for every interpretive artist who ever drew breath. He must be true to the writer and true to himself. He literally serves two masters. To expect the interpreter to be a puppet who conceives and executes the ideal Hamlet (or Puck or Lady Macbeth or Merton of the Movies) is to deny the human condition. An actor can discipline his effects in order to avoid distortion of the play - giving up, sometimes, his most popular tricks - but to expect him to reject the totality of his personality in order to imitate The Character is madness. The actor is stuck with the character, but the character is also stuck the actor. Directors sometimes pretend that the character is everything and that the actor must adjust no matter how uncomfortable it makes him, but the actors job is to preserve himself somehow - not by distorting the play... but by admitting his own limitations, by knowing what he can make real for the audience and what he can't. If the actor has been miscast, he cannot compensate for the error by destroying his God-given nature on the stage. It is the producer's job to know beforehand how flexible the actor is.

An ironic aspect of this story is that in 1993, federal securities regulators forced companies, for the first time, to reveal details about the pay and perks of their top executives. The idea was that once pay was in the open, boards would be reluctant to give executives outrageous salaries and benefits. This, it was hoped, would stop the rise in executive compensation, which neither regulation, legislation, nor shareholder pressure had been able to stop. And indeed, it needed to stop: in 1976 the average CEO was paid 36 times as much as the average worker. By 1993, the average CEO was paid 131 times as much. But guess what happened. Once salaries became public information, the media regularly ran special stories ranking CEOs by pay. Rather than suppressing the executive perks, the publicity had CEOs in America comparing their pay with that of everyone else. In response, executives’ salaries skyrocketed.

The conversation soon turned to executive compensation.

Executive compensation remained a sticking point.

while resisting the more complex compensation formulations that might deter bigger banks or be difficult to execute. I

VC Fred Wilson estimates that a typical startup will turn over its management team three times between its inception and when it achieves significant scale. Wilson emphasizes that turning over a team is not the same as firing someone for poor performance. Still, it can be tough to create new roles for senior managers who can’t handle the evolving demands of their current positions, and terminating them can be demoralizing for colleagues who’ve worked with them since the beginning—especially if those individuals are torchbearers for the startup’s mission and values. Wilson notes that serial entrepreneurs, having seen these patterns before, are better equipped to manage executive churn. He also advises founders to be open with new hires, letting them know that “they may not make it to the finish line, but they will be handsomely compensated with equity.

Why might that be? It is simply a manifestation of the “first who” principle: It’s not how you compensate your executives, it’s which executives you have to compensate in the first place. If you have the right executives on the bus, they will do everything within their power to build a great company, not because of what they will “get” for it, but because they simply cannot imagine settling for anything less. Their moral code requires building excellence for its own sake, and you’re no more likely to change that with a compensation package than you’re likely to affect whether they breathe. The good-to-great companies understood a simple truth: The right people will do the right things and deliver the best results they’re capable of, regardless of the incentive system.

I recalled one example, when First Boston had loaned $450 million—40 percent of its equity capital—to just one firm, Ohio Mattress, in a disastrous deal Wall Street wits had christened “the burning bed.” Profits at First Boston were so pathetic that the firm had to sell a stake in its derivatives business just to pay bonuses. Meanwhile, it was rumored that Allen Wheat, the firm’s new chief executive officer, had received compensation of $30 million, although reports later indicated his compensation was a mere $9 million. The firm had been tagged Wheat First Securities, a reference to a small-time, relatively impoverished brokerage firm. It was no surprise that top salesmen were fleeing in droves. I, too, wanted out.

Historically, many investment groups have in practice outsourced much of the hard but dull, unglamorous work around corporate governance to a small club of consultancies known as “proxy advisors.” The biggest by far are Glass Lewis and Institutional Shareholder Services. Between them, they utterly dominate this niche industry, and are a quietly influential duo at the heart of the crossroads between the corporate and financial worlds. Glass Lewis attends more than 25,000 annual meetings across over 100 markets around the world every year. ISS brags that it covers about 44,000 meetings in 115 countries. Together, they advise thousands of investment groups with cumulatively tens of trillions of dollars’ worth of assets, and make millions of votes every year on their behalf. Many corporate executives resent the often formulaic approach of the proxy advisors, and see relying on them as an abdication of an investor’s responsibility. This is partly self-serving, as they dislike the proxy advisors’ views on compensation, for example. Yet there is an element of truth to it. Most investment groups don’t want the hassle of having to deal with many mundane issues across hundreds or even thousands of companies they own shares in. ISS’s and Glass Lewis’s raison d’être is to relieve them of this headache.

a dozen industrial executives in the country who earned more than $1 million in 1978. (Adjusted for inflation, his pay was equivalent to $5 million in 2019—less than a quarter of the average CEO compensation of $21.3 million that year.)

Vested interests also reinforce the status quo. High-level executives at Fortune 500 companies shun innovation because their compensation is tied to short-term quarterly outcomes that may be temporarily disrupted by forging a new path. “It’s difficult to get a man to understand something,” Upton Sinclair said, “when his salary depends on his not understanding it.

It’s not how you compensate your executives, it’s which executives you have to compensate in the first place. If

Geithner’s proposed terms for the loan—which drew heavily on the work of bankers he had asked to explore options for private financing for AIG—included a floating interest rate starting at about 11.5 percent. AIG would also be required to give the government an ownership share of almost 80 percent of the company. Tough terms were appropriate. Given our relative unfamiliarity with the company, the difficulty of valuing AIG FP’s complex derivatives positions, and the extreme conditions we were seeing in financial markets, lending such a large amount inevitably entailed significant risk. Evidently, it was risk that no private-sector firm had been willing to undertake. Taxpayers deserved adequate compensation for bearing that risk. In particular, the requirement that AIG cede a substantial part of its ownership was intended to ensure that taxpayers shared in the gains if the company recovered. Equally important, tough terms helped address the unfairness inherent in aiding AIG and not other firms, while also serving to mitigate the moral hazard arising from the bailout. If executives at similarly situated firms believed they would get easy terms in a government bailout, they would have little incentive to raise capital, reduce risk, or accept market offers for their assets or their company. The Fed and Treasury had pushed for tough terms for the shareholders of Bear Stearns and Fannie and Freddie for precisely these reasons. The political backlash would be intense no matter what we did, but we needed to show that we got taxpayers the best possible deal and had minimized the windfall that the bailout gave to AIG and its shareholders.

Leadership and Culture” may seem like a vague or general catch-all phrase. Let me offer some questions to guide you down the path and to set the stage for upcoming chapters on this important first piece of the framework. What does it feel like to be part of your company’s sales team? Is it a high-performance culture? Why do you feel that way? Are team members laser-focused on goals and results? What’s the vibe in the sales department (whether it is local or based remotely)? What does accountability look like on this team? How often, how big, and how loud are victories celebrated? Is the manager leading the team or just reacting to circumstances? Are sales team meetings valuable? Do salespeople leave those meetings better equipped, envisioned, and energized, or drained and discouraged? Do members of the sales team feel supported, valued, and appreciated? Does the existing compensation plan make sense and does it drive the desired behaviors and results? In what ways is the manager putting his or her fingerprints on the team? How much of the sales leader’s time is devoted to non-sales activities and executive and administrative burdens? What’s the level of intensity, passion, and heart-engagement of team members? I don’t believe that anyone would doubt that we can create significant lift in a sales organization by improving the answers to these questions.

The deliverer of feedback experiences anxiety, which often is compensated for by insensitivity masquerading as directness. The receiver experiences hurt feelings, wounded pride, and defensiveness. More often than not, both parties try to hide their true emotions, and that in itself becomes a variable in the conversation that if not managed can get in the way of clarity and effectiveness. This may be contrary to human nature, but the most effective means of preventing this is to be open about how the conversation is making you feel rather than trying to hide the emotional truth beneath a veneer of managerial bluster.

Often, much of the pressure (to execute a transaction) comes from brokers whose compensation is contingent upon consummation of a sale, regardless of its consequences for both buyer and seller.

Of course, to properly reward the “doers” you must correctly define what a doer is. This is central to the idea of execution. Simply put, a doer is a person who gets things done. Doing is meeting goals. Some goals are legitimately short-term goals that yield short-term results and are properly compensated on a short-term basis. But other goals are long-term and by definition we will not know if we have achieved those goals for some time. Consequently the people striving to meet those goals should be compensated on a long-term basis, with some portion of that long- term compensation based on achieving critical milestones toward the goal. And there are some goals that are so long- term that compensation should only be awarded when a person retires and his or her contributions to meeting those extremely long-term goals can be assessed. Leaders must take responsibility for setting the right rewards for doers. This is particularly true of boards of directors, many of which made egregiously bad calls in rewarding poor performance by the CEOs of their companies. Linked together as these behaviors are, rewarding the doers must be based on the correct metrics. For too long companies—and this often involved boards of directors— set “shareholder value” as one of the goals to be measured and rewarded in compensation plans. But the directors and CEOs who set shareholder value as a goal missed an essential point. Increasing shareholder value is an outcome, not a goal. If you set the right strategy with the right goals and execute well to implement the strategy and achieve the goals—growth in earnings per share, good cash flow, improved market share, for example—then shareholder value is the result. Get everything else right and shareholder value will take care of itself. EXPAND

As an illustration of the excesses of our time, all three men point to the gross inflation of executive compensation, which was 20 times an average worker’s pay in 1973 and is roughly 260 times an average worker’s salary today.

Sala conducted his own research. He chose 20 executives from a food-and-beverage company, half of whom had been rated as average performers by their colleagues while the other half were characterized as outstanding performers. All the executives took part in a two-hour interview on the topic of leadership performance. Two observers categorized the content of the interviews and noted humorous references. Humor that included put-downs of others was coded as negative, while humor used to point out funny things or absurdities was coded as positive. According to Sala, “The executives who had been ranked as outstanding used humor more than twice as often as average executives, a mean of 17.8 times per hour compared with 7.5 times per hour … When I looked at the executives’ compensation for the year, I found that the size of their bonuses correlated positively with their use of humor during the interviews. In other words, the funnier the executives were, the bigger the bonuses.

Although a partner’s compensation depends in large part on the amount of business he brings to the Firm, no one goes out to knock on doors. The Firm waits for the phone to ring. And ring it does, not because McKinsey sells, but because McKinsey markets. It does this in several different ways, all of them designed to make sure that on the day a senior executive decides she has a business problem, one of the first calls she makes is to the local office of McKinsey. The Firm produces a steady stream of books and articles, some of them extremely influential, such as the famous In Search of Excellence by Peters and Waterman.* McKinsey also publishes its own scholarly journal, The McKinsey Quarterly, which it sends gratis to its clients, as well as to its former consultants, many of whom now occupy senior positions at potential clients. The Firm invites (and gets) a lot of coverage by journalists. Many McKinsey partners and directors are internationally known as experts in their fields.

Seven of the 30 largest U.S. corporations paid more money to their chief executives last year than they paid in U.S. federal income taxes, according to a study. The seven companies cited were Verizon, Boeing, Ford, Chevron, Citigroup, JPMorgan Chase and General Motors. A Verizon spokesman disputed the report, saying that the company paid $422 million in income taxes in 2013 and that "the federal portion of that number is well more than Verizon's CEO's compensation.

An executive consulted me about a young man whom he wished to advance in his company. “But,” he explained, “he cannot be trusted with important secret information and I’m sorry, for otherwise I would make him my administrative assistant. He has all the other necessary qualifications, but he talks too much, and without meaning to do so divulges matters of a private and important nature.” Upon analysis I found that he “talked too much” simply because of an inferiority feeling. To compensate for it he succumbed to the temptation of parading his knowledge.

The executive Power shall be vested in a President of the United States of America. He shall hold his Office during the Term of four Years, and, together with the Vice President chosen for the same Term, be elected, as follows: Each State shall appoint, in such Manner as the Legislature thereof may direct, a Number of Electors, equal to the whole Number of Senators and Representatives to which the State may be entitled in the Congress: but no Senator or Representative, or Person holding an Office of Trust or Profit under the United States, shall be appointed an Elector. The Electors shall meet in their respective States, and vote by Ballot for two Persons, of whom one at least shall not be an Inhabitant of the same State with themselves. And they shall make a List of all the Persons voted for, and of the Number of Votes for each; which List they shall sign and certify, and transmit sealed to the Seat of the Government of the United States, directed to the President of the Senate. The President of the Senate shall, in the Presence of the Senate and House of Representatives, open all the Certificates, and the Votes shall then be counted. The Person having the greatest Number of Votes shall be the President, if such Number be a Majority of the whole Number of Electors appointed; and if there be more than one who have such Majority, and have an equal Number of votes, then the House of Representatives shall immediately chuse by Ballot one of them for President; and if no Person have a Majority, then from the five highest on the List the said House shall in like Manner chuse the President. But in chusing the President, the Votes shall be taken by States, the Representation from each State having one Vote; a Quorum for this Purpose shall consist of a Member or Members from two thirds of the States, and a Majority of all the States shall be necessary to a Choice. In every Case, after the Choice of the President, the Person having the greatest Number of Votes of the Electors shall be the Vice President. But if there should remain two or more who have equal Votes, the Senate shall chuse from them by Ballot the Vice President. The Congress may determine the Time of chusing the Electors, and the Day on which they shall give their Votes; which Day shall be the same throughout the United States. No Person except a natural born Citizen, or a Citizen of the United States, at the time of the Adoption of this Constitution, shall be eligible to the Office of President; neither shall any Person be eligible to that Office who shall not have attained to the Age of thirty five Years, and been fourteen Years a Resident within the United States. In Case of the Removal of the President from Office, or of his Death, Resignation, or Inability to discharge the Powers and Duties of the said Office, the Same shall devolve on the Vice President, and the Congress may by Law provide for the Case of Removal, Death, Resignation or Inability, both of the President and Vice President, declaring what Officer shall then act as President, and such Officer shall act accordingly, until the Disability be removed, or a President shall be elected. The President shall, at stated Times, receive for his Services, a Compensation, which shall neither be encreased nor diminished during the Period for which he shall have been elected, and he shall not receive within that Period any other Emolument from the United States, or any of them. Before he enter on the Execution of his Office, he shall take the following Oath or Affirmation:—"I do solemnly swear (or affirm) that I will faithfully execute the Office of President of the United States, and will to the best of my Ability, preserve, protect and defend the Constitution of the United States.

He therefore determined to hire a hatchet man to do the nasty work for him, bringing in a former McKinsey operative and giving him the title of Chief Operating Officer. This COO was himself quite expensive, his salary, bonus, long-term compensation, and perquisites amounting to the cost of several hundred smaller jobs. He at once targeted Law, Accounting, Public Relations, Event Planning, Office Services, and several other formerly integrated departments for extreme unction, although he did spare the executive chef. “This place is way fat,” he told the CEO, who knew he was full of shit but admired the zeal with which he justified his compensation.

Talent management is popular because it helps legitimize and normalize horrendously inflated pay cheques. ‘This “talent mind-set” is the new orthodoxy of American management,’ Malcolm Gladwell wrote more than a decade ago. ‘It is the intellectual justification for why such a high premium is placed on degrees from first-tier business schools, and why the compensation packages for top executives have become so lavish.’25 According to this line of thought, it is entirely acceptable that some people are rewarded inordinately while others are left empty handed.

For most of the twentieth century, directors were paid largely in cash. Now, so that their interests will be aligned with those of shareholders, much of their pay is in stock. Boards of directors were once populated by corporate insiders, family members, and cronies of the C.E.O. Today, boards have many more independent directors, and C.E.O.s typically have less influence over how boards run. And S.E.C. reforms since the early nineteen-nineties have forced companies to be transparent about executive compensation.

Executive compensation dipped during the financial crisis, but it has risen briskly since, and is now higher than it’s ever been.

[Obama] was highly praised, including by his supporters, for his statesmanlike attitude during the lame-duck session, bipartisanship, and getting legislation through. What did he get through? The main achievement was a huge tax cut for the extremely wealthy...Meanwhile, at the same time, he initiated a tax increase on federal workers. Of course, no one called it a tax increase. That doesn't sound good. They called it a pay freeze. But a pay freeze on public-sector workers is exactly the same thing as a tax increase. So we punish public-sector workers and reward the executives of Goldman Sachs, who just announced a $17.5 billion compensation package for themselves.

In response, BEA launched an innovative program to put the company’s experts at the heart of its best customers’ IT organizations. BEA created Global Service Executives (GSEs) who were responsible for all services across education, consulting, and support. A portion of their compensation was based on customers’ ongoing success and full utilization of all purchased products. In addition, a client architect was placed on-site at strategic accounts, reporting to the customer’s CIO. These roles were in position to see customers’ needs from the inside and to help customers create strategy and road maps. Use proactive services to extend

It’s not how you compensate your executives, it’s which executives you have to compensate in the first place. If you have the right executives on the bus, they will do everything within their power to build a great company, not because of what they will “get” for it, but because they simply cannot imagine settling for anything less. Their

Nipsy Jhamb - Responsible for managing HR Operations, HRIS, Benefits, and Recruiting for a global organization specifically designing, aligning and executing a global HR business strategy into the operating fabric of the Firm. Consult with senior business leader across a full spectrum of HR areas, especially in talent programs, total rewards, executive compensation, global integration, etc.

On the most basic question of all, “who is a Jew?” Elisabeth could find no solid answers. Many of her interviewees simply shrugged: “Ask three Jews, get five opinions.” In a later Christianity Today article, Elisabeth summarized her search for answers. “It is not, Israel officially proclaims, a racial question. There are Jews in every anthropologically-defined “race”—from the black Ethiopian to the Chinese orthodox Jew. “It is not a religious question. Probably fewer than ten percent of Israelis are orthodox Jews, and many are not only not religious, but are militantly anti-God. “To be Jewish is not a linguistic question. Over seventy languages are spoken in Israel, even though Hebrew is the official language and strong efforts are made to encourage everybody to learn it. “It is not a cultural question. Some Jews, desperately casting about for a definition that would satisfy me, said that Jewishness is a “cultural consciousness.” But what culture? Elisabeth had seen keening eastern Jewish women in Arab dress, Jews from New York’s East Side, Russian Jews, and Israeli natives born on kibbitzes. There were clearly no common denominators in terms of rituals, speech, dress, or outlook. “Is Jewishness then a political category?” Elisabeth continued. “Israel is a political state, but there are millions of Jews who are not Israelis. There are thousands of “Israelis” who are not Jews—every Arab now “assimilated” into the nation of Israel by conquest is officially an Israeli . . .” At the time the Israeli government defined Jews genetically, which to Elisabeth seemed a strange contradiction when they so vehemently deny that Jewishness has anything to do with race. But the determining question is, “‘Who is your mother?’ Anyone born of a Jewish mother is Jewish. The question as to what makes her Jewish has no answer. If your father is Jewish, if he is even a rabbi, it will not help you at all.”⁠3 “I have come to the conclusion that it remains for Israel; alone to execute justice for those who are its responsibility. If its highways must cut through the Arabs’ desert, if it claims ‘eminent domain,’ it must justly compensate those who have been displaced, those whose empty houses and lands Israel is now determined to fill with its own immigrants.

By having no affiliation with “coin” in its name, Ethereum was moving beyond the idea of currency into the realm of cryptocommodities. While Bitcoin is mostly used to send monetary value between people, Ethereum could be used to send information between programs. It would do so by building a decentralized world computer with a Turing complete programming language.11 Developers could write programs, or applications, that would run on top of this decentralized world computer. Just as Apple builds the hardware and operating system that allows developers to build applications on top, Ethereum was promising to do the same in a distributed and global system. Ether, the native unit, would come into play as follows: Ether is a necessary element—a fuel—for operating the distributed application platform Ethereum. It is a form of payment made by the clients of the platform to the machines executing the requested operations. To put it another way, ether is the incentive ensuring that developers write quality applications (wasteful code costs more), and that the network remains healthy (people are compensated for their contributed resources).

Executive compensation is out of control in corporate America as a whole, and unlike other grossly overpaid business leaders, Raymond can at least claim to have made money for his stockholders. There’s a better reason to excoriate Raymond: For the sake of his company’s bottom line, and perhaps his own personal enrichment, he turned Exxon Mobil into an enemy of the planet.”1

The aspiring leader has been set up to fail. He just doesn’t recognize it yet. The first few months go well, but reality soon sets in. It is not easy for one person to create change in a large corporation. After one year, the leader feels as though he is trying to make innovation happen inside an organization that is, in every way, determined to fight his every move. The general manager of the company’s largest product line is anxious about the possibility that the innovation will cannibalize him. Marketing is uncooperative, worried about possible damage to the company’s brand if the new product fails. Manufacturing is upset that it has to schedule small, inefficient runs for the new product. Salespeople are reluctant to push a product without a track record. Human resources is unwilling to waive compensation rules to hire a few experts that the project badly needs. Finance is concerned about margin dilution. Information technology claims that the project is too small to warrant exceptions to standard systems and processes.

Finally, Jensen and Meckling laid the foundation for the coming era of excessive executive compensation, positing that CEOs should be richly rewarded with stock to align their own incentives with their company’s financial performance.

But guess what happened. Once salaries became public information, the media regularly ran special stories ranking CEOs by pay. Rather than suppressing the executive perks, the publicity had CEOs in America comparing their pay with that of everyone else. In response, executives’ salaries skyrocketed. The trend was further “helped” by compensation consulting firms (scathingly dubbed “Ratchet, Ratchet, and Bingo” by the investor Warren Buffett) that advised their CEO clients to demand outrageous raises. The result? Now the average CEO makes about 369 times as much as the average worker—about three times the salary before executive compensation went public. Keeping that in mind, I had a few questions for the executive I met with. “What would happen,” I ventured, “if the information in your salary database became known throughout the company?” The executive looked at me with alarm. “We could get over a lot of things here—insider trading, financial scandals, and the like—but if everyone knew everyone else’s salary, it would be a true catastrophe. All but the highest-paid individual would feel underpaid—and I wouldn’t be surprised if they went out and looked for another job.” Isn’t this odd? It has been shown repeatedly that the link between amount of salary and happiness is not as strong as one would expect it to be

This is why the goal of shareholder value maximization and the compensation approach that goes with it are bad for shareholders. The very executives who must achieve the goal realize that they can’t. Talented executives can grow market share and sales, increase margins, and use capital more efficiently, but no matter how good they are, they can’t increase shareholder value if expectations get out of line with reality. The harder a CEO is pushed to increase shareholder value, the more the CEO will be tempted to make moves that actually hurt the shareholders.

On April 25, the government decided to act on Claiborne’s recommendation—spending federal money to compensate planters whose slaves had died in the insurrection. They passed an “Act providing for the payment of slaves killed and executed on account of the late insurrection in this Territory.” The act provided $300 per slave killed to each planter, and it also provided one-third of the appraised value of any other property destroyed in the insurrection.

Bob Hoyt outlined how executive compensation would work;

The Industrial Revolution that led to mass production and the division of labour brought separation between the manufacturer and the customer. Over time as companies grew and grew, so did the rift with the customer. Tying executive compensation to share price has shifted the leadership’s attention away from the customer and towards the stock market, a contributing factor to the current malaise. Social media is starting to empower the consumer, providing a largely unregulated, democratic means to hold businesses to account for disappointing or dishonest behaviour. Personalisation and customisation are becoming the norm, raising customer expectations. The profusion of new digital touchpoints – smart-phones, kiosks, websites – has created headaches for

I Want to Progress in My Career “Becoming a manager” is often seen as “getting a promotion,” which invokes starry images of a golden future: opportunities to have more impact, take on exciting new challenges, and be rewarded with more compensation and recognition. In many organizations, your ability to grow in your career will hit a ceiling unless you start managing people. All C-level executives lead teams. If your ambitions are to be a CEO or VP someday, you’re going to need to move on to the management track.

What is the impossibility that I am compensating for right now with my Winning Strategy?

The Numbers Game Even Graham would have been startled by the extent to which companies and their accountants pushed the limits of propriety in the past few years. Compensated heavily through stock options, top executives realized that they could become fabulously rich merely by increasing their company’s earnings for just a few years running.1 Hundreds of companies violated the spirit, if not the letter, of accounting principles—turning their financial reports into gibberish, tarting up ugly results with cosmetic fixes, cloaking expenses, or manufacturing earnings out of thin air.

These are not marginal or idiosyncratic categories of income (although the need to translate from tax categories to moral ones inevitably introduces judgment and imprecision into any accounting). Founder’s shares, carried interest, and executive stock compensation give nominally capital gains a substantial component of labor income, especially among the very rich. To begin with, roughly half of the twenty-five largest American fortunes, according to Forbes, arise from founder’s stock still held by the founders who built the firms. Moreover, the share of total capital gains income reported to the Treasury that is attributable to carried interest alone—to the labor of hedge fund managers—has grown by a factor of perhaps ten in the past two decades and now comprises a material share of all the capital gains reported by one-percenters. And over the past twenty years, roughly half of all CEO compensation across the S&P 1500 has taken the form of stock or stock options. Pensions and housing also contribute substantially to top incomes today, roughly doubling the shares that they contributed in the 1960s. Once again, the data cannot sustain precise measurements, but these forms of labor income, taken together, plausibly comprise roughly another third of top incomes, sitting atop the roughly half of top incomes attributable to labor on even the most conservative accounting. The data therefore confirm—top-down—the narrative of labor income that bubbles up from a survey of elite jobs. Both the top 1 percent and even the top 0.1 percent today receive between two-thirds and three-quarters of their income in exchange not for land, machines, or financing but rather for deploying their own effort and skill. The richest person out of every hundred in the United States today, and indeed the richest person out of every thousand, now literally works for a living.

Clearing A Heideggerian term that in German (Lichtung) means a clearing in the forest, a light, an opening. The clearing you are determines what is possible in the “opening” you are for others as a leader. The transformations of Executive Re-Invention are designed to produce a shift in your clearing as a leader: from being a clearing for fixing and improving what’s wrong and shouldn’t be as a compensation for what’s not possible, to a clearing for making the impossible happen.

I don’t know. He’s the kind of person they probably won’t retire anyway.” But one of the executives was proactive. He was driven by values, not feelings. He took the initiative—he anticipated, he empathized, he read the situation. He was not blind to the president’s weaknesses; but instead of criticizing them, he would compensate for them. Where the president was weak in his style, he’d try to buffer his own people and make such weaknesses irrelevant. And he’d work with the president’s strengths—his vision, talent, creativity. This man focused on his Circle of Influence. He was treated like a gofer, also. But he would do more than what was expected. He anticipated the president’s need. He read with empathy the president’s underlying concern, so when he presented information, he also gave his analysis and his recommendations based on that analysis. As I sat one day with the president in an advisory capacity, he said, “Stephen, I just can’t believe what this man has done. He’s not only given me the information I requested, but he’s provided additional information that’s exactly what we needed. He even gave me his analysis of it in terms of my deepest concerns, and a list of his recommendations. “The recommendations are consistent with the analysis, and the analysis is consistent with the

Throughout history, the means of dealing with aggression (crime) has been punishment. Traditionally, it has been held that when a man commits a crime against society, the government, acting as the agent of society, must punish him. However, because punishment has not been based on the principle of righting the wrong but only of causing the criminal “to undergo pain, loss, or suffering,” it has actually been revenge. This principle of vengeance is expressed by the old saying, “An eye for an eye, a tooth for a tooth,” which means: “When you destroy a value of mine, I’ll destroy a value of yours.” Present day penology no longer makes such demands; instead of the eye or the tooth, it takes the criminal’s life (via execution), or a part of his life (via imprisonment), and/or his possessions (via fines). As can be readily seen, the principle—vengeance—is the same, and it inevitably results in a compound loss of value, first the victim’s, then the criminal’s. Because destroying a value belonging to the criminal does nothing to compensate the innocent victim for his loss but only causes further destruction, the principle of vengeance ignores, and in fact opposes, justice.

The general American population is unknowingly supporting executive leaders becoming very rich off the sick and our limited healthcare dollars.

These are all executives who have been trained for years to grow their own businesses and are compensated based on their profitability. Suddenly I was saying to them, essentially, “I want you to pay less attention to the business at which you’ve been very successful, and start paying more attention to this other thing. And by the way, you have to work on this new thing along with these other very competitive people from other teams, whose interests don’t necessarily line up with yours. And one more thing, it won’t make money for a while.” In order to get them all on board, I not only had to reinforce why these changes were necessary, but I also had to create an entirely new incentive structure to reward them for their work. I couldn’t penalize them for the purposeful erosion and disruption of their businesses, and yet there were no early bottom-line metrics to assess “success” in the new business. We

Finance Minister Mike de Jong steered government into its fifth straight year of austerity measures and cutbacks. The Liberals had been taking an axe to government spending since 2009, cutting millions. They’d reduced the advertising budget. Banned all but essential travel. Slashed office expenses. Cancelled service contracts. Fired some government employees. Instituted a hiring freeze within the civil service. Cracked down on compensation and bonuses for Crown corporation executives. And sold more than one hundred surplus government properties and assets. Clark would add to that a sweeping “core review” of the entire government, designed to hunt down red tape, eliminate duplication, and remove barriers to economic growth and job creation.

In tribunal, Mother held a funeral. Fake condolers spread, A debate they held For here I was, Behind bars, Her heart I took stealthily, And she… Fell for me, Unwillingly. Silence! the judge said to audience: Mother, defense, Reporters, radio agents, The girl's father; the wronged. Plead your case, judge says, to the father, my prosecutor, to guillotine, pushing me closer. "This boy is but a thief, Stealing a heart from my daughter. His poetry starting a war within her, Between his charm and care For her and another, Between his eloquence and fear, And how much closer she went. On love she came to reflect. And his way a choice she sent: Love not the rhyme, but me… repent. Or let poetry be enough, throw away my love. Of quitting poetry, he reported then betrayed her heart and stole it. Now without him she is With her love he lives And caused his madness her death This, your honor is the case. I now demand Justice, And the guillotine." "Silence! Defense." This boy, your honor, A poet and a sweet-talker, Both things, inevitable and meritless. He, I say, shall be sold To the unemployed, And those who of hope are void, Or to radio agents To break him apart And be, for entertainment, sold in a gallery of yearning and joining, specially or renouncement and criticism, alternately, or love unescapable. Money, it shall yield, a compensation to the girl and her lost heart that is now ancient." "Silence! The Mother." "Your honor, If him you must kill, Include me in the will. Let the pond of his blood Water the crops Let its source be my heart and his unpublished poems and the starved bellies and the nibs of birds the branch inhabitants That should be rather the middle Between his memory and the kill Rather fearless Not a hunger filled injustice" The father, "I object, It is all of him I want A compensation for my daughter and her heart" The defense, "Rather to pieces be fractioned, Between the ill, the unemployed and the runaway; Divided." A humming noise, In his honor's chest, In my rhymes, Rather… in the entire court. "Silence!", he said. He a man who is free His heart telling him to revolt The only power he's got Is but a plea to God To be by the revolution killed not And by karma hit not. What I now see fit, Is for him to be executed, by what to his nature is opposite. Deny him the pen And the flag Tell him every detail of the girl and her lost heart No way to reach her will be allowed he This is my decree Allowed not his poetry Is but death to the free To be by his words suffocated To love stealthily "All Rise!" "Case dismissed." Oh, la la la Oh, la la la

Moreover, even if they are eventually weeded out, one-sided managerial compensation packages impose huge costs on the rest of the economy while they last. The workers have to be constantly squeezed through downward pressure on wages, casualization of employment and permanent downsizing, so that the managers can generate enough extra profits to distribute to the shareholders and keep them from raising issues with high executive pay (for more on this, see Thing 2).

We had also created 2,500 401(k) millionaires because employees had invested in Honeywell, with 95 percent of them below the executive level and the lowest compensated earning an annual salary of only $43,000.

Sony paid both stars handsomely for their consistent success: $20 million against 20 percent of the gross receipts, whichever was higher, was their standard compensation. They also received as much as $5 million against 5 percent for their production companies, where they employed family and friends. Sony also provided Happy Madison and Overbrook with a generous overhead to cover expenses—worth about $4 million per year. To top it off, Sandler and Smith enjoyed the perks of the luxe studio life. Flights on a corporate jet were common, with family members and friends often invited along. On occasion, Smith’s entourage and its belongings necessitated the use of two jets for travel to premieres. Knowing that Sandler was a huge sports fan, Sony regularly sent him and his pals to the Super Bowl to do publicity. In addition to enjoying the best tickets and accommodations, they had a private basketball court to play on, which the studio rented for them. Back at the Sony lot, the basketball court was renamed Happy Madison Square Garden in the star’s honor. When anybody questioned the wide latitude and endless indulgence given to Sandler and Smith, Sony executives had a standard answer: “Will and Adam bought our houses.

A good metric changes the way you behave. This is by far the most important criterion for a metric: what will you do differently based on changes in the metric? Drawing a line in the sand is a great way to enforce a disciplined approach. A good metric changes the way you behave precisely because it’s aligned to your goals of keeping users, encouraging word of mouth, acquiring customers efficiently, or generating revenue. Unfortunately, that’s not always how it happens. At one company, Alistair saw a sales executive tie quarterly compensation to the number of deals in the pipeline, rather than to the number of deals closed, or to margin on those sales. Salespeople are coin-operated, so they did what they always do: they followed the money. In this case, that meant a glut of junk leads that took two quarters to clean out of the pipeline—time that would have been far better spent closing qualified prospects. Of course, customer satisfaction or pipeline flow is vital to a successful business. But if you want to change behavior, your metric must be tied to the behavioral change you want. If you measure something and it’s not attached to a goal, in turn changing your behavior, you’re wasting your time. Worse, you may be lying to yourself and fooling yourself into believing that everything is OK. That’s no way to succeed.

To mitigate the downside of the risks you take, you should try to focus them—line them up with a small number of hypotheses about how your business will develop so that you can more easily understand and monitor what drives your success or failure. You also have to be prepared to execute with more than 100 percent effort to compensate for the bets that don’t go your way.