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Government should have no say. Board should set salary and bonus package.
As far as base. If the CEO screws up how much will that decision cost the company. If he is correct how much will the company be rewarded by his decision.
Depending on company size I can easily see where the CEO is worth 100x that low on the totem pole employee. Little risk and reward for the bottom of the wage scale with huge risks and reward for the CEO. A quality CEO should be compensated for their ability to minimize those risks while maximizing the reward.
The bonus package should be based on various indicates. They should include, but not limited to, profits, cash flow, cap ex, and sales growth, .
Last edited by Sooner or later; 05-14-2019 at 08:26 PM..
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