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And, if you did a quantitative analysis of CEO compensation versus stakeholder satisfaction, I suspect you'd find a bell curve similar to that of any other job or profession.I recently purchased a Bern Carbon Watts helmet after looking for a new helmet for quite some time. Moreover, I generally think that companies get what they pay for. Indeed, in some cases, CEO pay is out of control and corporate governance is dysfunctional at best. We only know what we read, and that's pretty hyperbolic, if you ask me.īottom line. And like any job we've never had, most of us know very little about what it entails. While that's understandable, it's not logical. It's obscene, it's corrupt, and it stinks to high heaven.Īs the pinnacle of the business world, people tend to either glamorize or trash CEOs. So no, I'm not going to sit here and defend what top executives on Wall Street make. It's also part of a dysfunctional system that includes the Treasury, the Fed, Congress, and federal regulators, i.e. The truth is that Wall Street is a narrow sliver of corporate America. These days everybody's talking about Wall Street versus Main Street, whatever that means.Just look at a few recent failed or failing turnaround attempts: Jonathan Schwartz at Sun, Dan Hesse at Sprint, Michael Dell at Dell, Jerry Yang at Yahoo, Mike Zafirovski at Nortel. Just so you know, I certainly don't think every CEO is worth it.CEOs of most private companies, which are much smaller, probably make about half that. Sure, his stock and option grants were valued at $1.1M, but only because the stock went up.

CEO pay example: Harold Hughes, CEO of Rambus - a $300 million company valued at $2 billion - last year total comp, not including stock, was $633,000.

Typical small business and startup CEOs probably don't make a whole lot more than their highest paid employees. The vast majority of CEOs don't make anywhere near the kind of dough you read about all the time in the media. and at least an order of magnitude more private companies.

Folks love to throw around big numbers from CEOs of the S&P 500, but there are about 9,000 public companies in the U.S.

Is he worth it? How about Fred Smith of FedEx, Herb Kelleher of Southwest Airlines, or John Mackey of Whole Foods? Do I need to tell you what kind of return on investment all these CEOs I've named so far made for their stakeholders? How many jobs they created? They were all worth it.

How about Howard Schultz? Without him, there would be no Starbucks.

Was Lou Gerstner worth it to IBM? When everyone else thought the only way to save the company was to break it apart, Gerstner alone realized that "IBM had a unique and unequaled capability to apply complex technologies to solve business challenges." By restructuring IBM around that new value proposition, Gerstner brought "IBM back from near extinction." He was worth it.

So how about John Chambers at Cisco, Eric Schmidt at Google, Meg Whitman at eBay, or Andy Grove at Intel.

Is Steve Jobs "worth it" to Apple's shareholders, customers, and employees? I think you'd be hard-pressed to find anyone who would say "no." Likewise, was Bill Gates worth it to Microsoft's stakeholders? How about Richard Branson and the Virgin Group? Sure, they're founders / entrepreneurs.And since most people don't have a clue what a CEO actually does or how much the average CEO actually makes, it certainly deserves and answer. That said, I think "Are CEOs Worth It?" is a very intriguing question.