Rewarding corporate executives for good performance resonates with employees and investors. Read more.
Financial and economic considerations, not political perception, should guide business decisions. Boards should base executive compensation on what the executives in question are worth, not “optics” or “people’s perceptions” of excessive business profits. Loblaw is a company worth, at time of writing, $40.7 billion, which includes the value not only of its grocery business, but its pharmacy and bank.
It is also far from certain that giving the CEO a pay raise is bad optics in any real way. Grocery shoppers choose where to shop based on prices, quality, variety and convenience. No one chooses their grocery store based on which pays their CEO the least. Or at least, no serious person does – Jagmeet Singh and other moralizing socialists might. Meanwhile, rewarding corporate executives for good performance resonates with employees and investors.
Jagmeet Singh’s objections to Loblaw’s profits and its CEO’s compensation is the standard socialist tripe that corporate profits and executive compensation represent a loss to consumers and ordinary workers. We may soon hear him insisting that a surgeon’s income reduces the welfare of the patients on whom he or she operates, that star athletes’ salaries are a loss to the fans who pay for them through ticket prices, and that restaurant diners are made worse off if the chef is paid more.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
LAU: Federal politicians running businesses would starve us allGovernment ownership of business is an idea, quite appropriately, in wide disrepute.
Read more »
LAU: Federal politicians running businesses would starve us allGovernment ownership of business is an idea, quite appropriately, in wide disrepute.
Read more »
Matthew Knies to make NHL debut tonightMatthew Knies to make NHL debut tonight Via sunhornby
Read more »
Matthew Knies to make NHL debut tonightMatthew Knies to make NHL debut tonight Via sunhornby
Read more »