How does a board objectively evaluate that a potential CEO is worth say $25M/year over a candidate who will take the job for $4M/year?
Previous job performance isn't that reliable since countless CEOs have been great at one company in terms of raising stock price/revenue/profit/whatever, and then flamed out at a future company. How does one know in advance that one CEO will increase revenue by a few percent more than another, and justify such an expensive compensation package?
Previous job performance isn't that reliable since countless CEOs have been great at one company in terms of raising stock price/revenue/profit/whatever, and then flamed out at a future company. How does one know in advance that one CEO will increase revenue by a few percent more than another, and justify such an expensive compensation package?