compensation

Corporate governance is a myth

The concept of corporate governance implies consistent and effective laws, methods, and metrics for governing our nation's public companies. The sad fact is that there is no such thing. It's a myth. Here's why:

People talk about the fiduciary responsibility of boards of directors. What that means, in plain speak, is that boards are supposed to:

1) Hire and fire the CEO and appoint other corporate officers 2) Compensate the CEO and other corporate officers 3) Oversee corporate strategy 4) Represent shareholders in the transparent and effective governance of the company

As an ex-officer of several public companies and as a consultant, I've been involved with lots of boards, executive staffs, investment banks, VCs, corporate attorneys, and the like. At least in my experience, boards don't operate the way they're supposed to.

Let's take the last point first. Shareholders are offered a slate of directors and a handful of issues to rubberstamp. That means they have two choices: accept or reject.

Now, let me ask you this. If your spouse or doctor says, "Here's my recommendation, take it or leave it," what do you do? That's right, you take it. Is it the best thing for you? Who the heck knows? You had a gun to your head so you nodded up and down.… Read more

Larry Ellison couldn't buy this kind of PR

And here I thought that court sycophancy died out with the demise of the ancient regime.

In Forbes' annual list of top executive salaries, Oracle's Larry Ellison finished in first place, with total 2007 compensation at $192.9 million. I'm sure it's good to be the king. But just in case any jealous serfs are asking why this mere mortal is worth such a royal sum, here comes journalist Sarah Lacy to remind us Ellison "deserves to be one of the most highly paid CEOs in the Valley."

That might have been a good point … Read more

Ellison tops tech exec salary list

Congratulations, Larry Ellison, you're No. 1!

Forbes, as it does every year, has released its list of top executive salaries. In the overall list as well as the technology category, Ellison, the Oracle chief exec and billionaire yachtsman, was tops with total 2007 compensation at $192.9 million.

It's another big win for Ellison, who recently won a $3 million tax break on his $200 million estate in swanky Woodside, Calif. Ellison's lawyers successfully argued that the house suffered from "significant functional obsolescence" because it turns out there's a limited market for 23-acre estates … Read more

Apple shareholders want input on executive compensation

CUPERTINO, Calif.--Apple shareholders approved a non-binding resolution Tuesday asking the board of directors to give shareholders input on executive compensation.

Preliminary results of the voting were not immediately available following the close of Apple's annual meeting of shareholders, but the proposal required a simple majority to pass. Another shareholder proposal to create a board committee on sustainability and environmental protection was rejected.

Scott Adams, representing the AFL-CIO, urged shareholders to demand a "say on pay," bemoaning the runaway surge in executive compensation. "The U.S. system for paying the CEO is broken," he said. … Read more

Potty training and sales compensation

The past few weeks my youngest daughter has been in full potty training mode. While some experts (read: Dr. Phil) suggest having the trainee call their favorite superhero, having done this a few times we have Lily call someone much more reliable:

Greta, my third child.

Greta seems to be a natural caregiver (and busybody) who has taken a keen interest in helping her younger sister to be potty trained. We've accentuated this desire by offering chocolate chips to Lily and Greta. When Lily has no desire to visit the restroom (which is often), Greta has an insatiable appetite for chocolate. She convinces Lily to "go potty" and everyone is happy.

More and more frequently Lily goes on her own, but Greta still demands payment. At first I resisted (something in me doesn't like the idea of someone getting something for nothing), but then I let it slide as it reminded me of a lesson I had learned in the past two years about compensating salespeople.

How so?… Read more

How to negotiate in a gray world

Over the years, I've noticed something lots of techies have in common--they like things to be black-and-white. Sorry if that offends you, but in my experience, it's true.

Unfortunately, the real world is gray. Like it or not, living and thriving in a gray world, especially a gray workplace, involves negotiating. None of us are born with negotiating skills. We have to learn them. This will help.

Here are five things you need to know to negotiate effectively. They'll help you in all your work-related relationships - with peers, managers, subordinates, customers, vendors, everyone. They'll help you to negotiate better compensation packages, promotions, and even exit packages.

Who knows, they may even help to improve your personal and personal business relationships. After all, so much of family and business life involves negotiating.… Read more

What bad year? AMD's Hector Ruiz gets a raise

UPDATED: See lengthly explanation below.

Apparently blessed with the best salary-negotiating skills in the universe, AMD CEO Hector Ruiz is getting a raise.

After spending most of Thursday apologizing to financial analysts for AMD's performance in 2007, the company revealed in a filing with the Securities and Exchange Commission that Ruiz's compensation agreement was amended on Wednesday with his new salary: $1,124,000. Earlier this year, AMD said Ruiz made $1,046,358 in base salary (click for PDF) during 2006, with a total compensation package for the year of $12,848,435.

AMD's stock is … Read more

Apple considering raise for Jobs?

After years of drawing just a dollar in salary, Apple CEO Steve Jobs could be in store for a raise.

Apple filed its annual report for its 2007 fiscal year Thursday afternoon, and hinted in a section about executive compensation that Jobs could be in for some real money fairly soon. "Because Mr. Jobs's continued leadership is critical to Apple, the Compensation Committee is considering additional compensation arrangements for him," the company wrote.

Now, it's not like Jobs is hurting for money. According to Forbes' most recent list of the world's billionaires, Jobs ranks 132nd … Read more

Dell agrees to pay former CEO $48 million

Editors' note: This blog initially misstated the price per share of former CEO Kevin Rollins' stock options had he been able to exercise them. The correct price is $28.67. The story should also have included that Rollins' stock options had vested prior to his leaving the company.

Kevin Rollins supposedly walked away from Dell with a measly $5 million payout. Turns out Dell's former CEO is pocketing nearly 10 times that amount.

Dell said in an 8K report filed on Wednesday that once the company finally files an annual report, it intends to pay Rollins $48.5 million. … Read more

PayScale, a job seeker's best friend

PALO ALTO, Calif.--Americans have always been forced to play guessing games about their market worth. Job seekers or those who suspect they're underpaid should visit PayScale.com.

The Seattle-based company operates a Web site where anyone can supply details about their compensation and the service will tell them how it stacks up against peers.

Employees have typically dug up info on pay scales by asking friends employed in the same field--an inexact and frustratingly limited amount of information. Who knows if Joe or Sue is telling the truth?

"This throws light on information that has always been … Read more