The more a CEO gets mentioned in Business Week, the New York Times, Wall Street Journal and other major national business publications, the bigger their pay, according to a new study.
Investors might have lost a fortune with Wall Street's top banks writing off billions in trading losses related to the credit crunch. But the ones who are really cleaning up are the financial professionals who are set to take home record bonuses this year.
Corporations are not really doing that well when it comes to explaining to investors how executives are compensated and what exactly they have to do to earn their bucks, says the Securities and Exchange Commission.
Why are United States taxpayers paying the private military and security firm Blackwater, $1,222 a day for the services of each of its single protective security specialist? By most estimates that amount is six times what it would cost for a U.S. soldier to perform the same duty.
Bonuses for London traders and bankers have doubled in the wake of the M&A, private equity and hedge fund booms and waiting list for Rolls-Royce vehicles is now five years.
How much the CEO gets paid depends very much on his social circles. CEOs attend various social functions, they meet up at exclusive golf clubs and country clubs and that inevitably creates some social ranking. Put simply, a study shows the higher up and better connected you are, the more you get.
Leon Gettler is a blogger and senior business journalist at The Age, specializing on management issues. His latest book, Organisations Behaving Badly focuses on the forces that lead smart executives into making dumb decisions.
