How insidious is CEO pay on society? From the Roosevelt Institute in this post, “When a lot of important people act this way, there is enormous pressure to let things slide. Our economy becomes less real and less safe. At the same time, transactional practices and businesses morph into transactional ethics. The social contract between business and society changes for the worse. And any sense of corporate social responsibility goes out the window. So, yes, I think we should care.”
I will tell you things are sliding. I heard from one friend at a Regional bank that she cannot stand the culture anymore and has to leave. There is not merit, only favoritism. I heard from another at a different bank that promotions are going to those who do not even practice what they preach. Their self explanations of presumed success are countermanded by documentation and the opinions of those they work with. But what they do have is that they are “pleasers” to those above. Their results are worse than other candidates’, but the manner in which they pretended to obtain those results validates the similar claims to success spouted by the superiors.
I’ve heard that described as the “conspiracy to mis-lead”. It is a conspiracy in that the leader gets to pretend to lead, the subordinate pretends to be well led, and they both collect the money.
That’s not to say we should feel hopeless. It is to say we should fix it.
Vote your shares against management’s recommendations.