Re: Are Executive Paid Too Much???
I was once told by a HR exec that a persons salary will not equate to a reward once it reaches a certain level. That level is different between all of us, but essentially, when all our normal living needs are taken care of, then excess funds have a diminishing returns affect. Another words, the more you pay them, the less growth in performance you will gain.
What's his name, Hertzberg (I think), said extrinsic tangible rewards are like food. When you are hungry, you feel like you can eat a horse, but as soon as your belly is full, a person can offer you cream cakes and chocolate yet you wont be interested in consuming them.
Money is the same as the food, at some point sateity is reached and it becomes irrelevant and serves no purpose in the motivational scheme of things.
The motivator then must move to the intangable, such as status, peer acknowledgement etc - items no money can buy. Yet we are led as sheep to believe the more we pay, the better the performance, when in fact, if the boards offered better ways to satisfy the higher grade needs, we would certainly see better performance - regardless of wage.
I have seen people paid woefull salaries, and because they had the knowledge and passion, performed extremely highly and only so they could blow their own trumpet and say "see, look what I did!" Money didn't matter..
Yes we are all jealous, hell, $33m and I would be more than set - but would I still seek to work? You betcha! My share trading is for fun, the thrill of the chase - not to make money, I am already comfortable.
Yeah, I know, ramble ramble ramble...
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