CEOs pay reports aren’t what they’re taking home. They are taking much more. Performance equity factors outsize market activity…by a lot.

Oracle reported paying co-CEO $190 MM over three years. Is that what he earned ? Not even close. His pay over those 3 years was valued at $535 MM- almost 3X as much -WSJ

As we can see, there’s the distinction between reported CEO pay and realizable pay, and you can read the graph on 18 companies presented there.

But that *shouldn’t* concern shareholders much, does it ? “Companies usually disclose the maximum possible award value, at award-date share prices, in a footnote.”

I’ve read enough 10Q and 10Ks in my life to cover 100 miles if printed and rolled out cover to cover.

And what is long term performance ? Is that really three years ? (consider your average long-term shareholders stick for decades).

It’s never been a better time to be a CEO.

Can you believe it they’ve got 9-year old CEOs ?

And he’s making more than you’ll ever make in your lifetime.

I’ll tell you what Roland Smith, ex-CEO of Office Depot is doing, According to the WSJ (“For CEOs, High Pay, Higher Anxiety”- Vanessa Fuhrmans, Joann S. Lublin), he is taking a 13,000 mile motorcycle trip with his son from Key West to Alaska and then to Jackson Hole.

CEOs pay is out of control. That’s nothing new to those that analyze their investments. CEOs of public firms make today some 300 X what an AFC (Average Frustrated Chump) , I mean average employee makes, up 10 times from the late 1970s and most of the 1980s. Does the average employee produce less now than they did 30 years ? Absolutely not. Do the CEOs produce more now than they did decades ago ? In fluff and fold, maybe.

The CEO is no longer the “protected class”. No longer serving the 20-year term. How many of us hold a job for 20 years anymore ?  GE CEO Jeff Immelt is leaving this summer after 16 years, not by happenstance, but because of sub-performing stock and a nudge from activist Trian Fund Management.

According to the WSJ:

“In June 2017 alone, the CEOs of GE, Uber, Buffalo Wild Wings, Perrigo, Pandora Media resigned or announced their departure.” Don’t be fooled by the word “resignation” which most press releases read, these folks are pushed out. Don’t be too concerned for them either, these people land on their feet better than cats do.

Activists investors are partly responsible for those replacements (https://sharkrepellent.net/). Partly responsible also are the ever increasing changing technologies and competitive challenges from upstarts (WSJ).

There is a law before legislators which calls for  mandatory disclosing the Pay ratio between the Big Wig pay and the Average Joe pay. I’m skeptical of it. Some people think adjusting for company size, “using actual realized rather than estimated target pay and factoring in the performance of previously awarded shares makes it better.” (WSJ, July 6, 2017)

One of the problems with CEO succession is the search process itself and the favoritism involved. Typically, boards solicit Executive Search firms so it appears to be an arms-length deal. Those Executive Search firms, and I know quite a few (would rather not name them) , drag their feet and rarely, if ever take a chance on a non-conventional individual.

What about the CEO life ? Well, this guy is a CEO and he has even made a video about it:

Note: To make a video like this in the US as a public figure, not such a good idea. Here you would have just signed your resignation letter and collected 1.6 million viewers enemies. However, entertainment is entertainment and actors are always in demand.

I have a question to ask you, whether you watch that video or not, do you have the tools to rise up the ranks ?

MY TWEET OF THE DAY (07/13/2017)

I already had 4000 of my readers emailed theirs. #techjobs #careers #whoshiring #SanFrancisco https://t.co/txJouolPbv #Thanks, @Benioff #win pic.twitter.com/bnhCDC7qGy

— Max Cantor (@FinancierGuru) July 14, 2017