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Let's
see...you run a company to make profits. You are
compensated based upon the results you achieve.
Your shareholders see their investment appreciate.
Isn't that the way things are supposed to go?
One of the
problems with today's business environment is that too
many executives are being compensated for poor
performance. An excellent example is the recent
story about a search engine company that went belly up.
The former
CEO of the company bought all of the assets of the
company out of bankruptcy for $81,000. This
includes its search, classification and content
integration technology. Just two years ago, the
company had raised $20 MILLION in a venture capital
round.
So, the man
responsible for driving the company into bankruptcy
benefits by owning all of the assets for pennies on the
dollar, and pays the bill with money he received for
doing such a miserable job.
We just have
to ask - what's wrong with this picture? |