Reply to post: Re: Call me cynical...

Intel CEO made $178m in first 10 months, AMD CEO got a $2m pay rise

Anonymous Coward
Anonymous Coward

Re: Call me cynical...

This is almost right. It's unusual for a CEO in one industry to go be a CEO in another, though it does happen. What's not at all unusual is for a retired CEO to sit on half a dozen other giant corporations' boards of directors. Usually these retired CEOs own no meaningful interest in these corporations and any shares they do own were usually given to them as compensation for sitting through a few meetings. It's not unusual to see multinationals with 20 directors, most of whom are retired CEOs and lobbyists, with the occasional token academic or banker. As long as the skin-tone and gender makeup is "right", the board is considered "effective" and "experienced" by whatever ISS is called nowadays, who tell all the index funds that own these companies how to vote. Never mind whether any of the directors care or even know the first thing about the businesses they're supposed to be guiding or the shareholders they nominally represent.

If you don't like this state of affairs (and I don't either), vote against every useless director. Every share you own, every company, every year. The company's CEO shouldn't be on the board either; that's the hired help. Choose to own smaller companies that index funds don't buy, so you don't have to fight ISS. Typically I find that even so I vote against 60% of the directors, despite selecting companies that have at least one useful, invested director. Most have none at all, just retired club buddies skimming their half mill a year off each company and rubber-stamping whatever the current CEO wants.

Capitalism was fine. This is not capitalism. If it were, the owners would be running these companies.

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