Executive compensation can be quite a big deal if you're a shareholder with a company; as you'd expect, people want to be able to have a say on whether or not a high ranking member of an organization is getting paid at appropriate rates. Microsoft, the huge company that it is, is aware of this, and voted on Friday to allow its shareholders to have this very ability, according to CNET.Microsoft's board voted for this to be approved, and from now on, a vote will be held every three years that will give shareholders their chance to make a mark; CNET stated that the vote will be advisory in nature, and the first of the advisory measures will be included in the upcoming shareholder meeting on November 19. Brad Smith, a Microsoft general counsel and board secretary, stated, "Given the interest in executive pay, we think it makes sense to encourage more dialogue with our shareholders on our compensation approach."
Aditi Mohapatra, a sustainability analyst with the Calvert Group, said, "We believe that establishing an advisory vote on compensation is a significant step in providing shareholders a voice on this important issue." This is related to the fact that a number of shareholder groups and unions have been encouraging a number of large companies to give shareholders more say in terms of pay. Microsoft is said to have worked with a range of its shareholders to produce this approach, some of which previously submitted proposals very similar to the voting system Microsoft has now included.
Any anyway, Microsoft probably has one of the highest rates of engineers to managers in the world. Or at least it used to. I m sure that Microsoft pays their top rated engineers more than the managers. Bill was an engineer, after all.
Why didn't you mention Vista in there? And what does being a mac user have to do with anything, unless you are saying that Windows users can't judge good OSes?
Every time I've seen shareholders vote down pay increases the executives give them to themselves anyway.
They need to be legally binding IMHO !
From what I understand, Microsoft's pay across the board is supposed to be pretty good. I've never heard a complaint about their compensation actually.
They pay in the top 60th percentile.
It constantly pays dividends to its shareholders. Learn before you open up.
Paying dividends is what you do to keep shareholders that are unhappy because your stock is flat.
US Corporations have always had to answer to the shareholders, plus stock is sold in a relatively open market -- if the market thinks a corp has/is mucking things up, shares get dumped, stock prices dive, & those in charge lose money in their stock options, bonuses, & holdings. Also remember that the focus is on future stock prices, & what other stock buyers are expected to do... if they buy the stock prices go up = stockholders make money. What the corp pays anyone is not usually a shareholder concern -- only making money through increasing share prices & dividends... if someone makes huge sums of money, and that's what it takes for investors to make loads of money, then so be it. That's how/why some on Wall St. got so incredibly rich.
Today because of all that's happened with the recession, the banks that have gone under, the HUGE government bailouts, & the even bigger gov deficits, CEOs & other execs are a target. You can debate whether this is deserved, or is just the gov giving the public scapegoats to save their own hides. Regardless, the gov is talking about taking on the power to set exec pay.
Microsoft is saying: "See guys -- you don't have to worry 'bout us", thinking maybe it'll help keep the gov out of their business.
This makes no sense. When the government makes a law, it becomes illegal to not to do it. If they mandate maximum wages, just as they have minimum wages, it will be illegal to overpay someone.
Yes, this is not a good idea. There is a backlash against huge payouts at the moment. I am not sure why the gov is pandering towards this. The rules will need to be so complex.
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