Arrangements Quote by Warren Buffett
“Too often, executive compensation in the U.S. is ridiculously out of line with performance. That won't change, moreover, because the deck is stacked against investors when it comes to the CEO's pay. The upshot is that a mediocre-or-worse CEO - aided by his handpicked VP of human relations and a consultant from the ever-accommodating firm of Ratchet, Ratchet and Bingo - all too often receives gobs of money from an ill-designed compensation arrangement.”
About This Quote
Executive pay often misaligns with performance due to flawed compensation structures, favoring CEOs and their allies.
In simple terms: CEO pay is often unfair.
Key Takeaway
Advocate for fair compensation designs.
Themes
compensation
leadership
fairness
Mood
critical
analytical
Type
advice
observational
When to use this quote
- shareholder meetings
- board decisions
- policy reform
- investment analysis
Key Concepts
Corporate governance
incentive alignment
Questions to Reflect On
- What reforms could better align pay with results?
- How can investors influence compensation policies?
A Different Perspective
Changing entrenched pay practices requires collective shareholder action.
