Why aren't CEOs held accountable for poor leadership that places corporations into financiall dire straits?

Question

Giving CEOs tens of millions as they leave isn't what I'd consider holding them accountable.

Answer 1

That's one of the major flaws of the Capitalism and the Free market nonsense.

Answer 2

Golden parachutes are the result of desperate corporations seeking the cadre of over paid CEOs that lurk about in the corporate world.  These professional CEOs have legions of lawyers who write excellent work contracts that lead to these buy out clauses and severance packages.

Answer 3

They are!

Shareholder compensation is extensively disclosed, and there is great shareholder input.  Companies are very sensitive to this.

Having the "lowest paid executives in the country" running their company is NOT something shareholders have been clamoring for, though.

And I generally don't care what other people are making.  I focus on my strengths and weaknesses, rather than wasting time with envy.

PS  Shareholders can decide the issue.  And consumers can avoid buying the company's products.

There could be a very good argument for any business receiving a taxpayer bailout, though!

Answer 4

Well, the stock owners should be demanding that severence pay isn't what it seems to be.  If the stock holders made their voices heard, maybe, just maybe, there wouldn't be so much breaking of ethics and morals within corporations.

Answer 5

I agree.  

If a CEO directly shares in the profit when a corporation is profitable, then he should share in the liability when a corporation is in dire straits. Simple as that.

But our system rewards both success and failure for the rich.  For the rest of us, we are seldom if ever rewarded.  Case in point, during the Bush administration, GDP rose consistently each year.  That means we as Americans produced more.  Yet during the same time, real wages went down for the middle class and skyrocketed for the wealthy 1%. So the middle class was punished for producing more and the rich were rewarded.

Answer 6

It's a failure of the free market system, plain and simply.

Answer 7

Thanks god we don't hold any one accountable for their f**kups in this country.

He he he hehehehehehehehe

Answer 8

is it your contention that it is the governments job to hold PRIVATE businesses accountable when they make monetary decisions you dont agree with...  

why does that sound like a terrible idea to any thinking person.

Answer 9

Because they are rich and powerful.

Instead the hard working men and women working in the shop get laid off, problem solved.

That's what we call free market and capitalism?

In a way bush is a CEO also, he destroyed this nation's economy, but will retire soon with $$billions in his bank accounts, while 75% of the Americans are loosing their homes.

It's a Tragedy.

It's Horror, horror.........horro..............??????...

Regards.

Answer 10

You answered your own question, they cheat their way out and use money.

Answer 11

Then buy stock in a company and vote to change that practice within that company.  It's the deal the stockholders agree to, it's their money and their choice.

Answer 12

They are held accountable you dumb socialist moron, they are accountable to ALL shareholders if they are publicly traded co., the entire company's health is dependent on their decisions, they are more acocuntable than an avg loser who rely on welfare when they fail or an elected official.

Severance packages are negotiated when they are hired NOT when they leave you ***. And often bonuses can be slashed or eliminated if certain performance parameters arent met you nitwit moron.

Answer 13

I agree, they should be held accountable, but that's up to the stockholders and board of directors of the corporation. Just like if you were to work for me and did a crappy job, if I pay you an immense amount of money to get you to leave, that's my business. (Not that I would mind you. If someone working for me does a crappy job, they're gone). It's no body's business how a company handles it's business.

Answer 14

If you are so concerned about CEO's, their accountability, and their salaries. I suggest you purchase a few shares in companies that interest you, then attend the yearly shareholder meetings and voice your concern. It will accomplish a lot more than posting questions on YA.

Answer 15

They are that is why they are forced to leave. Is that a tough concept for you?