CEO Salaries and Leadership Employee buy-in to a vision is important, but most companies do not have anything to buy into. Does anybody really have a "passion" for serving coffee, selling cars or purchasing clothes? If they do, it is because there is something about that job that fills their own personal needs, whatever those might be. It is not because they work for a visionary company that is going to change the world, one widget at a time. Most companies are just not that visionary, but again there is a high proportion of attention paid to superstar companies. Most leaders are a little bit like their companies -- they are transactional, and managerial in nature.
Leaders are important in organizations, but seldom is leadership just one person. My starting point with respect to CEO salaries is that they are overblown, and CEOs are not worth what they are paid. A truly exceptional CEO can warrant truly exceptional pay, because they make contributions to the organization that reflect in the share price. But most CEOs do not do this. They are too out of touch to lead, and the rest of the leadership team can handle the day-to-day leadership of most companies, with any halfway competent CEO. Most C-suiters are good enough to take on the CEO's job, at least the leadership part, if not the political aspects of it. In essence, I find that there is a pretty significant difference between great leaders who are visionary and can bring about buy-in from people who've never even met them, and most leaders, whose contribution is overstated. Too many people conflate great leaders with average ones, and assume a similar pay scale need not apply. But boards approve CEO compensation, and most CEOs sit on multiple boards, so there isn't much more than a thin veneer of accountability anyway.
As for employee motivation, I don't think leadership is even part of most motivation theories. From Hertzberg to Maslow, motivation theories tend to be pretty inward-looking, take the base assumption of the employee as selfish first and foremost, motivated by the things that he/she wants. Motivation to please a leader is not something that is part of ...
The vision part of leadership comes into play with respect to reading the tea leaves about the industry, and the opportunities that exist to improve the shareholders' wealth. I agree that this is an important sort of vision, but it is not the sort of vision that necessarily inspires employees. I can only imagine the masses sitting in thrall at the CEO selling them on the vision of selling to a private equity firm, or merging with a competitor in order to extract synergies. That's just the nature of business -- most of it is pretty mundane, and people work for companies for pretty mundane motivations. The CEO is not inspirational, nor particularly visionary beyond charting strategy to account for the latest economic forecast.
The reality is that the U.S. is an outlier on CEO salaries. Yes, American companies want the best CEOs from all over the world, but the best CEOs call their own shots, and they don't need the money. All the overpayment…
Employee buy-in to a vision is important, but most companies do not have anything to buy into. Does anybody really have a "passion" for serving coffee, selling cars or purchasing clothes? If they do, it is because there is something about that job that fills their own personal needs, whatever those might be. It is not because they work for a visionary company that is going to change the world, one widget at a time. Most companies are just not that visionary, but again there is a high proportion of attention paid to superstar companies. Most leaders are a little bit like their companies -- they are transactional, and managerial in nature.
Mergers and Acquisitions As a CEO, you are trying to acquire a foreign firm. The size of your firm will double, and it will become the largest in your industry. What does your firm do and what does the foreign firm you are trying to acquire do? Where are the firms based? Before any M&A proceeding should occur. An analysis of the macroeconomic factors and industry related factors should be conducted. In
M2Global Technology Ltd. has a specific metric that determines CEO and managerial pay based upon a combination of financial returns, efficiency, and customer satisfaction. Stock options with restrictions that cannot be 'cashed out' for a number of years, or forms of equity that are dependant upon long-term goals also reduces the incentive for CEOs to quickly and artificially boost stock prices. They ensure that the CEO has a real, financial
Organizational Behavior Power and influence are two critical aspects of the ways that people in organizations interrelate. Power is relatively simple -- it is about how you get what you want. Influence is trickier -- the text understands it as the reaction to power. The author discusses issues relating to obedience. The acceptance of authority is discussed, and the author proposes that there are four conditions that must be met in order
Additionally, Weston Smith's wife Susan Jones-Smith, was also a finance executive at the company, a further example of the incestuous relationships that characterized the financial leadership of HealthSouth. A failure of the company meant the failure in the financial future of the family of one's friends and spouses. Another warning sign should have been the nature of the company's assets. The firm was able to conceal its financial shenanigans for
Electronic Cigarettes International Group (ECIG): Report on Strategic Management Electronic Cigarettes International Group (ECIG) is a publicly traded (OTC:ECIG) company that specializes in producing, distributing and selling e-cigarettes, vaporizers, e-liquids, and related merchandise to consumers looking for an alternative smoking experience or a method to help them quit smoking traditional cigarette or tobacco products. ECIG develops and sells a number of brands including VIP, FIN and Vapestick in the UK, U.S.,
Outrageous Salaries of Chief Executive Officers When Gordon Gekko, in the movie 'Wall Street' told the shareholders of Teldar Paper, "The point is, ladies and gentlemen, that greed...is good. Greed is right. Greed works. Greed clarifies...captures the essence of the evolutionary spirit...and greed will not only save Tedar Paper but that other malfunctioning corporation called the U.S.A.," many corporate executives must have been listening and took it to heart (Wall pg).