Tech CEOs have this wet dream where they just speak into a microphone, “Create my product” and employees will no longer be needed. So… if it becomes that easy, why will Wall Street need tech CEOs?
Tech CEOs have this wet dream where they just speak into a microphone, “Create my product” and employees will no longer be needed. So… if it becomes that easy, why will Wall Street need tech CEOs?
This can’t be stressed enough. Every since the Sarbanes–Oxley Act of 2002 which came from the Enron and Worldcom collapses, C-suite exists as the person to go to jail if shit really hits the fan.
The idea of the law was to hold companies accountable, instead all if has done is force companies to create more layers and places to point fingers, thus muddling everything and making to where no one can be held accountable.
At the same time, Chief officers now knowing that there’s legal requirements, have just demanded outrageous pay and compensation because of the “massive risk” they are taking with any company.
I’m glad we have SOX, but boy has that law really missed the mark on what it was enacted to do.
This is my first time hearing the idea that SOX caused C-suite bloat and ballooned CEO salaries. A quick google suggests that CEO pay was already very high ~8 years before this: https://www.payscale.com/data-packages/ceo-pay
But I’m not an expert in the data and haven’t looked closely; is there context I’m missing? Kinda seems like C-suite just started getting paid in stocks, and then we decided the stocks must go up (independently of SOX?).
CEO salaries were huge and often complained about long prior to SOX.
In the USA a law was passed to make CEO pay public for public companies. It was intended to shame the companies into lowering the salaries. CEO salaries skyrocketed. One guess was that “Our CEO must be the best, so we must pay the most to get the best.”
This was long before SOX in 2002.