CEO's run companies under and are rewarded? They should be rewarded "some", but not excessively when they succeed, but this should be put in escrow. When the CEO does bad, the money is taken from the escrow. They aren't going to change the system themselves, and their pals in Congress won't change it until forced to by the people. It's a shame that ethics aren't taught.
Offering multi-million dollar severance packages to get rid of CEOs who have mishandled company assets, or who have been a part in driving the company into the ground, is out of hand. Each year, employees retire from companies that they have given 20, 25, 30 and sometimes even more years to, without getting much more than a handshake and a road map to the welfare office. The people that work the front lines of a company are far more important than some CEO who might have been there 10 years.
In the current business climate, severance packages to ousted CEOs have become out of control expenditures that reward failure. If a departing CEO has not achieved their goals and are quickly asked to leave by a Board of Directors, they should not receive multimillion dollar compensation packages when their work did not benefit the company. Bonuses should be based on job performance not on failure.
Too many CEOs stuff themselves with perks and huge cash bonuses, as
part of their severance packages, while workers are laid off and their company
takes government bailouts or big tax breaks. Shame on all of them. There
is no corporate responsibility in America.
When a CEO receives vast amounts of money for doing a poor job, there is no incentive to run a company properly. Moreover, the money in that severance packages is money that will not go to people who may actually deserve it, such as lower-ranking employees. Severance packages reward CEOs for doing a poor job.
These days, it seems that all a CEO has to do is fail miserably to get a huge payout. When companies are mismanaged or are run unethically, and the company suffers, it makes no sense to bribe or give the CEO money to leave. A CEO should only be rewarded on success or meeting criteria. Failure should mean immediate removal with no pay.
The severance packages provided to CEOs that have become common in business are out of control. These packages provide ridiculous amounts of income with the understanding that this particular person is done his or her job. There should be some rule that only allows people who perform to the abilities expected to receive bonuses and severance packages. It is because of this greediness that many companies are in the financial trouble that they are.
The amount of money that companies pay these CEO's in general is ridiculous. These companies could put some of this money to good use to help other less fortunate people. The amounts that they pay these CEO's in severance packages is astounding. CEO's do not even do that much work for all the money they are paid, they delegate it out to others below them and pay them less for doing all the work.
The disproportionate amount of compensation - including severance packages - awarded to CEOs is helping to widen the gap between haves and have nots and is fostering an environment of corporate greed and corruption. Compare that to the pittance paid to the nation's teachers, and it gives you a good picture of where our values unfortunately lie.
Being an exiting CEO is one of the few times people are paid for unethical, and often illegal, activity. A CEO will cheat thousands and/or drive his company into the ground, but he will still get an unbelievable amount of money when he leaves the company. This can be in spite of losing billions of dollars for investors, and countless jobs for employees. They're being rewarded for ineptitude and thievery.
Severance packages are important for businesses, because they can give CEOs a sense of security when they sign up with a company. They will allow the CEO to take risks, and have some security, and they allow the business to attract the best CEOs they can get. In addition, the CEOs, if successful in a business, have helped the business in numerous ways, like increasing jobs, profits, etc. If the CEOs are largely responsible for such successes, they should be allowed to get paid much more for helping to create such great wealth. Severance packages also allow companies to replace their CEOs more frequently if they are not a good fit, thus allowing the business to try out many CEOs and telling the public that the business is implementing change in their business model if needed.