Comments on: Munger: Not enough executives have gone to jail http://www.inelegantinvestor.com/2007/01/08/munger-not-enough-executives-have-gone-to-jail/ Something of Value Sun, 07 Sep 2008 18:47:38 +0000 http://wordpress.org/?v=2.6 By: Don http://www.inelegantinvestor.com/2007/01/08/munger-not-enough-executives-have-gone-to-jail/#comment-279 Don Tue, 16 Jan 2007 04:39:23 +0000 http://www.inelegantinvestor.com/2007/01/08/munger-not-enough-executives-have-gone-to-jail/#comment-279 Obviously Munger knows a lot more about the business than I do but regulating corporate compensation packages seems like tricky business to me. CEO's clearly have a tremendous affect on a company's growth and overall health and therefore should be rewarded. Due to the riskiness of the business they get guaranteed money and as such even the not so great ones get rewarded as well. A lot more can be said on this topic. Connected - I can't help but see a similar situation with contracts in baseball. 252 million for A-rod? 150 million contracts being tossed around this offseason. Mo Vaughn earned 17.5million a year towards the end of his career while playing in 0 games!! Maybe the good CEO's are like the A-Rods, the producers (although I know Yankee fans would disagree) but at the same time bums get rewarded as well because the price for all players go up. I guess I agree with Munger that there really might not be a solution to the problem. Although one area that is clearly being addressed is wiser choices of the board of directors - having a 'buddy buddy' group is clearly not the way to go. Obviously Munger knows a lot more about the business than I do but regulating corporate compensation packages seems like tricky business to me. CEO’s clearly have a tremendous affect on a company’s growth and overall health and therefore should be rewarded. Due to the riskiness of the business they get guaranteed money and as such even the not so great ones get rewarded as well. A lot more can be said on this topic.

Connected - I can’t help but see a similar situation with contracts in baseball. 252 million for A-rod? 150 million contracts being tossed around this offseason. Mo Vaughn earned 17.5million a year towards the end of his career while playing in 0 games!! Maybe the good CEO’s are like the A-Rods, the producers (although I know Yankee fans would disagree) but at the same time bums get rewarded as well because the price for all players go up. I guess I agree with Munger that there really might not be a solution to the problem. Although one area that is clearly being addressed is wiser choices of the board of directors - having a ‘buddy buddy’ group is clearly not the way to go.

]]> By: David Neubert http://www.inelegantinvestor.com/2007/01/08/munger-not-enough-executives-have-gone-to-jail/#comment-173 David Neubert Wed, 10 Jan 2007 04:45:00 +0000 http://www.inelegantinvestor.com/2007/01/08/munger-not-enough-executives-have-gone-to-jail/#comment-173 We put a link to your article at our site on socially responsible investing. (thepanelist.com) though it's only in test for now. We put a link to your article at our site on socially responsible investing. (thepanelist.com) though it’s only in test for now.

]]> By: NextWarrenBuffett http://www.inelegantinvestor.com/2007/01/08/munger-not-enough-executives-have-gone-to-jail/#comment-171 NextWarrenBuffett Mon, 08 Jan 2007 11:18:57 +0000 http://www.inelegantinvestor.com/2007/01/08/munger-not-enough-executives-have-gone-to-jail/#comment-171 great article, I blogged about it on my site great article, I blogged about it on my site

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