CEOs Bashed in Poll

There's good and bad news for CEOs in Light Reading's Work Poll this month. The good news is that most people think their companies would survive if the CEOs were run over by a bus. The bad news is one in 12 would like to drive the bus.

So far, 91 people have taken the poll, and results indicate the following:

  • CEOs get well paid for what they do. Thirty percent of respondents describe their CEO's pay as "adequate," while 20 percent describe it as "generous"; 27 percent describe it as "over the top," and 15 percent described it as "out of control."

  • The jury is out on whether CEOs are worth the money they earn. On the plus side, 15 percent of respondents say their CEOs are "invaluable," and 28 percent say they're "positive on balance." At the other end of the scale, 13 percent say their CEO should be fired.

  • The best CEOs are the ones that have done it before. "Veteran CEOs" are best for startups, according to 36 percent of the votes, and are best for public companies, according to 52 percent. Original company founders get quite a high rating (27 percent) as CEOs for startups but get a much lower rating (7 percent) as CEOs of public companies.

To take the poll yourself and see the latest results in detail, please click on this link.

— Peter Heywood, Founding Editor, Light Reading

Stevery 12/5/2012 | 2:06:27 AM
re: CEOs Bashed in Poll So from the survey, about 1/3 claim their company would be better off firing the CEO, and another 1/3 claim it would only be a minor setback (which probably means fire them, since they are earning too much cash and breathing too much air.)

A fair number of the two thirds are CEOs who landed their jobs only because of the long economic expansion in the 90s.

How long before they are put out to pasture?
pdt 12/5/2012 | 2:06:35 AM
re: CEOs Bashed in Poll sevenbrooks,

i agree with what you say that lucent must report according to the law. but what i understand is that pat russo and the other management can be paid bonus because they sell these assets. they do not increasde the busines.

it would be better if their bonus is avarded on the parametres you describe i think.

perhaps the real flaw is that it is the management who make the terms and conditions of the compensation plan :-) to many share holder are non-executive. they must take more part in this process at shareholder meetings.

in europe also we have corruption that is awful. this will get worse as the european communite is adding the eastern europe states that were communist. i am not insulting their people, sorry if it sounds this way, but their systems have not yet recovered from the burden of communist corruption. in the next few years many american companies must deal with these systems, as there is a lot of business in eastern europe. so perhaps mrs russo and mr bross are already well experienced :-)

in the past we have looked at america for examples. so event sof the past 2 years have been very shocking for us.
truelight 12/5/2012 | 2:06:39 AM
re: CEOs Bashed in Poll The problem with CEO's today is they tell you what you want to hear not what you need to hear. This is an American Culture that has got out of control and has led many a company down a sorrowful path.

IMO the level of CEO integrity is at its lowest inmodern history. We have created a generation of CEO that are paid to "act" yet not perform or lead.

Peter Heywood 12/5/2012 | 2:06:57 AM
re: CEOs Bashed in Poll Yeah, we forgot a few questions, like:

* Do you believe what your CEO tells you?
* What should be the role of a CEO?
sevenbrooks 12/5/2012 | 2:06:58 AM
re: CEOs Bashed in Poll
The things you are listing are not abuse. They also do not represent Operating Performance of the business.

Probably the 2 things to look at:

- Operating Income
- Cash Flow (from the Cash Statement not EBITDA)

If you add these to your view of EPS it will help tremendously. Lucent is simply reporting these as required by FASB rules.

Nobody can justify the compensation they make as an executive of Lucent. They have taken Millions of Dollars in Salary and worse yet Bonuses to produce the corpse of a business.

pdt 12/5/2012 | 2:06:59 AM
re: CEOs Bashed in Poll i think there is a probleme in your question 3.

in the situation of Pat Russo her compesation may be calculated by financial performance, but she is allowed to cheat on this calculation.

last year when lucent made the profitable quarter first time, she cheated by using monies from pension funds.

last quarter she cheated by selling Corning stock.

in this way she makes it that she is performing well financialy and justifys her compensation.

how to guard against this abuse?
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