Executive Compensation And Unemployment | Mark Cuban’s Proposition
As this month’s unemployment figures were breaking (8.5%), Mark Cuban weighed in on fixing executive compensation. The ideas are related. As the discussion on executive pay continues, my message is simple. Give credit to those executives who bust their asses to avoid layoffs except in cases where its an absolute necessity. Pay ‘em a premium vs those who cut jobs in profitable companies. Look to private companies as guides to what a well managed company can accomplish, and how executives are compensated. Blogmaveric.com – Mark Cuban His post is a great reminder that in many ways layoffs are an admission of failure by executive management – the investment in human capital they made has not paid off and must now be written off. This devastating blow to the emotional health of a firm and its knowledge base is not improved by an impression that the executive ranks are rewarded for causing so much pain. … Continue reading