Sunday, 7 January 2007

You're Fired! Here, have $210,000,000.00

Fraser sent this Dilbert Cartoon to me a as an Xmas gift cuz he knows my bias against Six Sigma (an Ops guy at a company i did consulting for wanted to make the marketing and communications department follow Six Sigma HA!). I was reminded of this as I read about the firing yesterday of Home Depot CEO Bob Nardelli, his failed Six Sigma strategy and subsequent massive payout.

You know at some point, someones gotta wake up and start putting a firing CAP into these guys contracts. I mean if sports teams have salary CAPS why shouldn't CEOs have firing CAPS?

Have a read for yourself over at Business Week and at Seth's Blog.


Fraser said...

A few years ago I had hopes that the "market" would correct the problem of executive compensation. Sadly (obviously?) it has yet to happen.

What a terrible misalignment of incentives - "if you do such a poor, we'll pay you an insane amount of money to stop doing the job you're doing so poorly".

Real Time Web Analytics