CEOs pretty much pick the boards that give them salaries…
![“CEOs pretty much pick the boards that give them salaries and bonuses. That's one of the reasons why the CEO-to-payment [ratio] has so sharply escalated in this country in contrast to Europe. (They're similar societies and it's bad enough there, but here we're in the stratosphere. ] There's no…” quote by Noam Chomsky](https://sms4smile.com/q/img-quotes/e5a/noam-chomsky-42_boards_ceos-pretty-much-pick-the-boards-that-gi_2936811.jpg)
“CEOs pretty much pick the boards that give them salaries and bonuses. That's one of the reasons why the CEO-to-payment [ratio] has so sharply escalated in this country in contrast to Europe. (They're similar societies and it's bad enough there, but here we're in the stratosphere. ] There's no particular reason for it.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
CEOs influence board composition, inflating their compensation relative to workers, especially in the US versus Europe.
In simple terms: CEOs pick boards, boosting their pay.
Key Takeaway
Recognize and address corporate governance flaws.
Themes
power
economics
inequality
governance
Mood
critical
analytical
Type
policy
economic
When to use this quote
- shareholder meetings
- legislative hearings
- public debates
Key Concepts
corporate capture
pay disparity
policy failure
Questions to Reflect On
- How can board independence be ensured?
- What policies could cap CEO pay?
A Different Perspective
Reforms face strong lobbying resistance.