Friday, November 11, 2005

Corporate Heavyweight


At thesmokinggun.com you can find many embarrassing public documents. Here is the mug shot of Dennis Kozlowski of Tyco. What struck the Dodger was size: 6'2", 225 for Kozlowski, and 6'4", 210 [actually pretty much normal weight but still a big dude] for his associate Mark Swartz.

Most mug shots at this site lack height and weight, but then, Tom Delay is in color.

Question is whether size and thus intimidation are characteristics of big deal corporate executives.

The sin of modern executive compensation is stock options. Even public bodies like the California State pension fund have pushed on shareholder value, that is, the stock price. "Incentives" for executives are giving them stock. So, executives do anything to pump up the stock price, which is the basis of their personal fortune. But stock price is almost completely irrational, based on stock analysts, glorified press agents, and earnings growth rather than earnings. All of which is hype. It would be much better if these guys were given outrageous salaries and perks to line their pockets., rather than distort the functioning of the enterprise.

0 Comments:

Post a Comment

<< Home