--- title: "Meaning & Key Takeaway of: Too often, executive compensation in the…" description: "\"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 ag..." image: "https://sms4smile.com/quotes/i/c7a/warren-buffett-183_ceo_too-often-executive-compensation-in-the_1575216.jpg" --- # Too often, executive compensation in the U.S. is… ![“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.” quote by Warren Buffett](https://sms4smile.com/quotes/i/c7a/warren-buffett-183_ceo_too-often-executive-compensation-in-the_1575216.jpg) [Download](https://sms4smile.com/quotes/i/c7a/warren-buffett-183_ceo_too-often-executive-compensation-in-the_1575216.jpg) [Open image](https://sms4smile.com/quotes/i/c7a/warren-buffett-183_ceo_too-often-executive-compensation-in-the_1575216.jpg) > “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.” [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Executive pay in the U.S. is far detached from performance, and systemic biases keep it that way. **In simple terms:** CEO pay is misaligned with results. Key Takeaway Demand fair compensation structures. Themes corporate governance inequality shareholder rights Mood critical analytical Type political economic When to use this quote - board meetings - shareholder activism - policy reform - investment decisions Key Concepts economics ethics incentives Questions to Reflect On - What reforms could align pay with performance? - Who benefits from the current system? A Different Perspective Changing entrenched compensation norms is difficult. ★ ★ ★ ★ ★ No ratings yet [Ceo](https://sms4smile.com/quotes/about/ceo/) [Compensation](https://sms4smile.com/quotes/about/compensation/) [Executives](https://sms4smile.com/quotes/about/executives/) [Investing](https://sms4smile.com/quotes/about/investing/) [Investors](https://sms4smile.com/quotes/about/investors/) [Performances](https://sms4smile.com/quotes/about/performances/) ## Related quotes > [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…](https://sms4smile.com/quotes/warren-buffett/too-often-executive-compensation-in-the-u-s-is-ridiculously-out-of/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I don't like what's going on with the executive compensation.](https://sms4smile.com/quotes/warren-buffett/i-don-t-like-what-s-going-on-with-the-executive-compensation/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [For example: (1) As if governed by Newton's First Law of Motion, an institution will resist any change in its current direction; (2) Just…](https://sms4smile.com/quotes/warren-buffett/for-example-1-as-if-governed-by-newton-s-first-law-of-motion-an/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [The great irony of executive compensation is, if you pay your employees more, you're gonna create more demand for your goods and services! Which…](https://sms4smile.com/quotes/anthony-scaramucci/the-great-irony-of-executive-compensation-is-if-you-pay-your/) [Anthony Scaramucci](https://sms4smile.com/quotes/author/anthony-scaramucci/) > [“Even the highest compensation is a tiny fraction of the value created by many business and technical innovations. The problem with executive compensation in…](https://sms4smile.com/quotes/william-w-lewis/even-the-highest-compensation-is-a-tiny-fraction-of-the-value-created/) [William W. Lewis](https://sms4smile.com/quotes/author/william-w-lewis/) > [We have new rules that give shareholders the ability to vote on executive compensation. We have new rules for asset-backed securities. We have new…](https://sms4smile.com/quotes/mary-schapiro/we-have-new-rules-that-give-shareholders-the-ability-to-vote-on/) [Mary Schapiro](https://sms4smile.com/quotes/author/mary-schapiro/) > [You have to be intense. This only comes from the CEO, this only comes from the founders.](https://sms4smile.com/quotes/sam-altman/you-have-to-be-intense-this-only-comes-from-the-ceo-this-only-comes/) [Sam Altman](https://sms4smile.com/quotes/author/sam-altman/) > [“Those involved in mental as opposed to physical effort or who carry the responsibilities of management are presumed to require a higher payment for…](https://sms4smile.com/quotes/john-kenneth-galbraith/those-involved-in-mental-as-opposed-to-physical-effort-or-who-carry/) [John Kenneth Galbraith](https://sms4smile.com/quotes/author/john-kenneth-galbraith/) > [Economic liberalisation has seen a big and often well-deserved spurt in executive compensation, especially for professional managers.](https://sms4smile.com/quotes/sucheta-dalal/economic-liberalisation-has-seen-a-big-and-often-well-deserved-spurt/) [Sucheta Dalal](https://sms4smile.com/quotes/author/sucheta-dalal/) > [The typical large company has a compensation committee, They don't look for Dobermans on that committee, they look for chihuahuas.](https://sms4smile.com/quotes/warren-buffett/the-typical-large-company-has-a-compensation-committee-they-don-t/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Scobe's Eighth Law: The moron will enter the single deck game when the count is sky high and the dealer is deciding whether or…](https://sms4smile.com/quotes/frank-scoblete/scobe-s-eighth-law-the-moron-will-enter-the-single-deck-game-when-the/) [Frank Scoblete](https://sms4smile.com/quotes/author/frank-scoblete/) > [We're providing planning to a huge audience who's never had access to financial planners before. This was always my plan for LearnVest. It was…](https://sms4smile.com/quotes/alexa-von-tobel/we-re-providing-planning-to-a-huge-audience-who-s-never-had-access-to/) [Alexa Von Tobel](https://sms4smile.com/quotes/author/alexa-von-tobel/) > [Well, we try to - we definitely try to have a balance. And I think things have gotten a lot better at Pixar. When…](https://sms4smile.com/quotes/pete-docter/well-we-try-to-we-definitely-try-to-have-a-balance-and-i-think-things/) [Pete Docter](https://sms4smile.com/quotes/author/pete-docter/) > [ This is the industry that wants \[music\], the rap industry. You have to be on deck all the time, but you do not have… ](https://sms4smile.com/quotes/young-thug/this-is-the-industry-that-wants-music-the-rap-industry-you-have-to-be/) [Young Thug](https://sms4smile.com/quotes/author/young-thug/) > [None of us have any control over the deck or the hand we've been dealt. What we do have is total responibility as to…](https://sms4smile.com/quotes/steve-alten/none-of-us-have-any-control-over-the-deck-or-the-hand-we-ve-been/) [Steve Alten](https://sms4smile.com/quotes/author/steve-alten/) ## More by Warren Buffett > [To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information. What's needed is a sound intellectual…](https://sms4smile.com/quotes/warren-buffett/to-invest-successfully-over-a-lifetime-does-not-require-a/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [“Be fearful when others are greedy, and be greedy when others are fearful.”](https://sms4smile.com/quotes/warren-buffett/be-fearful-when-others-are-greedy-and-be-greedy-when-others-are/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Making money isn't the backbone of our guiding purpose; it is the by-product of our guiding purpose.](https://sms4smile.com/quotes/warren-buffett/making-money-isn-t-the-backbone-of-our-guiding-purpose-it-is-the-by/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [We set no volume goals in our insurance business generally-and certainly not in reinsurance-as virtually any volume can be achieved if profitability standards are…](https://sms4smile.com/quotes/warren-buffett/we-set-no-volume-goals-in-our-insurance-business-generally-and/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Everybody's got a different circle of competence. The important thing is not how big the circle is. The important thing is staying inside the…](https://sms4smile.com/quotes/warren-buffett/everybody-s-got-a-different-circle-of-competence-the-important-thing/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [It is better to point out your own mistakes than have somebody else do it.](https://sms4smile.com/quotes/warren-buffett/it-is-better-to-point-out-your-own-mistakes-than-have-somebody-else/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I've read about all the sales today. If you're an auto dealer, you're feeling it. If you're a furniture retailer like we are, you're…](https://sms4smile.com/quotes/warren-buffett/i-ve-read-about-all-the-sales-today-if-you-re-an-auto-dealer-you-re/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I was lucky enough to be born in a time and place where society values my talent, and gave me a good education to…](https://sms4smile.com/quotes/warren-buffett/i-was-lucky-enough-to-be-born-in-a-time-and-place-where-society/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to…](https://sms4smile.com/quotes/warren-buffett/the-most-common-cause-of-low-prices-is-pessimism-some-times-pervasive/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [The reaction of weak management to weak operations is often weak accounting.](https://sms4smile.com/quotes/warren-buffett/the-reaction-of-weak-management-to-weak-operations-is-often-weak/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [What you really want to do in investments is figure out what's important and knowable. If it's unimportant or unknowable you forget about it.](https://sms4smile.com/quotes/warren-buffett/what-you-really-want-to-do-in-investments-is-figure-out-what-s/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I don't measure my life by the money I've made. Other people might, but certainly don't.](https://sms4smile.com/quotes/warren-buffett/i-don-t-measure-my-life-by-the-money-i-ve-made-other-people-might-but/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I mean the truth is, I've never had it so good in terms of taxes. I am paying the lowest tax rate that I've…](https://sms4smile.com/quotes/warren-buffett/i-mean-the-truth-is-i-ve-never-had-it-so-good-in-terms-of-taxes-i-am/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the…](https://sms4smile.com/quotes/warren-buffett/the-most-important-quality-for-an-investor-is-temperament-not/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Investors, of course, can, by their own behavior make stock ownership highly risky. And many do. Active trading, attempts to "time" market movements, inadequate…](https://sms4smile.com/quotes/warren-buffett/investors-of-course-can-by-their-own-behavior-make-stock-ownership/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) [Explore all 984 Warren Buffett quotes ](https://sms4smile.com/quotes/author/warren-buffett/) ## More Ceo quotes > [When you're young and you have money, you become the CEO, automatically, of life, of your family.](https://sms4smile.com/quotes/corey-haim/when-you-re-young-and-you-have-money-you-become-the-ceo-automatically/) [Corey Haim](https://sms4smile.com/quotes/author/corey-haim/) > [I took on the role of CEO, which involves directing the Management Team and overall day-to-day operations of 500.](https://sms4smile.com/quotes/christine-tsai/i-took-on-the-role-of-ceo-which-involves-directing-the-management/) [Christine Tsai](https://sms4smile.com/quotes/author/christine-tsai/) > [I learned a lesson that I don't ever want to be a CEO.](https://sms4smile.com/quotes/larry-wilcox/i-learned-a-lesson-that-i-don-t-ever-want-to-be-a-ceo/) [Larry Wilcox](https://sms4smile.com/quotes/author/larry-wilcox/) > [Strategy is not a solo sport, even if you're the CEO.](https://sms4smile.com/quotes/max-mckeown/strategy-is-not-a-solo-sport-even-if-you-re-the-ceo/) [Max McKeown](https://sms4smile.com/quotes/author/max-mckeown/) > [For any CEO that is skeptical at all: you have to create a social enterprise today!](https://sms4smile.com/quotes/angela-ahrendts/for-any-ceo-that-is-skeptical-at-all-you-have-to-create-a-social/) [Angela Ahrendts](https://sms4smile.com/quotes/author/angela-ahrendts/) > [I draw the line at some things. Some things I won't do for any amount of money. Like for instance, there's a couple of…](https://sms4smile.com/quotes/robert-crumb/i-draw-the-line-at-some-things-some-things-i-won-t-do-for-any-amount/) [Robert Crumb](https://sms4smile.com/quotes/author/robert-crumb/) > [I want to share that I had and still do, and a great relationship with Angela Ahrendts. She was the CEO of Burberry. One…](https://sms4smile.com/quotes/judith-e-glaser/i-want-to-share-that-i-had-and-still-do-and-a-great-relationship-with/) [Judith E. Glaser](https://sms4smile.com/quotes/author/judith-e-glaser/) > [If the CEO is not going to give you a fair chance, you're probably not going to win.](https://sms4smile.com/quotes/marshall-goldsmith/if-the-ceo-is-not-going-to-give-you-a-fair-chance-you-re-probably-not/) [Marshall Goldsmith](https://sms4smile.com/quotes/author/marshall-goldsmith/) > [I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple's CEO, I…](https://sms4smile.com/quotes/steve-jobs/i-have-always-said-if-there-ever-came-a-day-when-i-could-no-longer/) [Steve Jobs](https://sms4smile.com/quotes/author/steve-jobs/) > [Governor Romney may be running for CEO, I'm running for President](https://sms4smile.com/quotes/newt-gingrich/governor-romney-may-be-running-for-ceo-i-m-running-for-president/) [Newt Gingrich](https://sms4smile.com/quotes/author/newt-gingrich/) > [Culture is what happens when the CEO isn't in the room.](https://sms4smile.com/quotes/john-collison/culture-is-what-happens-when-the-ceo-isn-t-in-the-room/) [John Collison](https://sms4smile.com/quotes/author/john-collison/) > [Political journalists love graduate student intelligence, the ability to make clever allusions in seminars, and in 1999-2000 they hassled George W. Bush for not…](https://sms4smile.com/quotes/marvin-olasky/political-journalists-love-graduate-student-intelligence-the-ability/) [Marvin Olasky](https://sms4smile.com/quotes/author/marvin-olasky/) > [The deck is still stacked in favor of those already at the top. And there's something wrong with that. There's something wrong when CEOs…](https://sms4smile.com/quotes/hillary-clinton/the-deck-is-still-stacked-in-favor-of-those-already-at-the-top-and/) [Hillary Clinton](https://sms4smile.com/quotes/author/hillary-clinton/) > [While they're in WWE, we absolutely have a health and wellness policy. I'll probably always say 'we,' even though I've resigned as the CEO.…](https://sms4smile.com/quotes/linda-mcmahon/while-they-re-in-wwe-we-absolutely-have-a-health-and-wellness-policy/) [Linda McMahon](https://sms4smile.com/quotes/author/linda-mcmahon/) > [It doesn't make much sense and it's nil premium. They're going to have co-CEOs...which is a very uncomfortable structure.](https://sms4smile.com/quotes/martin-sorrell/it-doesn-t-make-much-sense-and-it-s-nil-premium-they-re-going-to-have/) [Martin Sorrell](https://sms4smile.com/quotes/author/martin-sorrell/) [Browse all 668 Ceo quotes ](https://sms4smile.com/quotes/about/ceo/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "Too often, executive compensation in the U.S. is ridiculously out of line with performance. 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