Outsourcing is the rage. It is possible to find qualified and cheaper workers to write software and perform other tasks in India, China, Taiwan, Turkey, etc. It makes competitive sense to outsource. Which leads to the following statement. Maybe it's time for American CEO's to include themselves in the outsourcing strategy. Certainly from a compensation standpoint it could be a great deal. US executives are by far the highest paid in the world, and their pay seldom has anything to do with performance. Directors give executives a boatload of money before they have done a lick of work. And when they fail, they are given another boatload of money so it doesn't hurt too much when the door hits them on their way out. If outsourcing the CEO's job isn't appealing, then what is the solution? Directors have to put a price tag on every single form of compensation so shareholders truly know what is going on. And directors have to stop rewarding incompetence. If a CEO is fired for screwing up, no more exorbitant severance packages.
(The Wall Street Journal, 19-Jul-2005, Midwest ed., p. B1)
No comments:
Post a Comment