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Is executive compensation out of control? When Silicon Valley’s top executives took home a collective $2.6 billion in pay for 2005 I think it’s safe to say the answer is an unequivocal yes. According to The Mercury News, the average direct compensation received by the 749 top Silicon Valley executives in 2005 was 51 times larger than the average pay made by Silicon Valley workers. Astonishing, I know, but not at all hard to believe when folks like Omid Kordestani of Google is pulling down $288.9 million and Carly Fiorina walked away from Hewlett-Packard with a jaw-dropping $28.5 million. I’m sure Google and HP would both argue that those packages are competitive, but really when it comes right down to it, they’re unseemly – grotesque, actually. Said Brandon Rees, assistant director of the AFL-CIO’s office of investment, “Executive compensation is the last unaddressed corporate scandal.


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  • This is completely true, but it has never changed since mankind discovered money and ownership. No matter what kind of setup you create there will always be some sharp operators who will game the system to get more than their fair share out of it. –gk

  • Anne

    Unfortunately, the guys with the big ideas, and the guys that head the companies can get whatever they want, they’re in charge. Who ever said business was fair; especially regarding salary and the rest of the employees?

  • Tom Mariner

    Larry Brown. the coach of the worst team in basketball, the New York Knicks, is going to take home $40 Million for not working the next few years because he did a bad job. He manages 15 players and a handful of coaches and has compensation more than Carly’s severance.

    Let’s put this in perspective — A great tech manager can motivate a team to create lasting value and insane shareholder value. the only reason I would turn a totally blind eye to the mind boggling numbers is that if it were spread more evenly around the company the results would probably be even more spectacular.


    You put your $ in 401ks, mutual funds etc and have NO IDEA in what the dough, commingled with thousands of other cash streams, is invested

    Well, offended sports fans, it goes to WALL STRRET.The WS guys and fund managers approve those crazy payouts with your $$.

    They have a reason to do so and it ain’t to encourage the corporate chieftans to do better.

    Nope, the cats who vote your money at the sharehlder meetings could care less about CEO pay.

    Instead, their votes are designed to ensure their investment banking side gets the really stupendous payoffs for the next IPO, Merger, etc.


    Lose control over your money and, gosh, why be surprised when the hogs have lunch.

    Everyone reading John–including him–is, by definition, a genius.

    So stop whing and devise a way to control how your money is voted.