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LETTERS TO OTHER EDITORS

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So, I’m reading my latest issue of BusinessWeek, and I’m heartened to see “Dallas” in the address line of a letter to the editor. And, hey, one line above that is “Merrie Spaeth.” I know her! She’s a frequent contributor to DallasCEO, a title I work on every, oh, day or so. The letter is lengthy-ish, so I’ll put it after the jump.

Boards can’t communicate a compelling rationale for CEO salaries because few boards define their metrics (“CEO pay: The prestige, the peril,” Up Front, Nov. 20). Innovative companies that want to be accountable for their CEO’s salary should look at the company’s reputation, market position, strength, customer and employee satisfaction, and other factors that are critically important to the future of the enterprise.

What if a board could say: “We paid our CEO this many millions of dollars because customer satisfaction went up, employee satisfaction and retention went up, reputation markers improved, and positions in our key competitive markets strengthened”? Now that’s a compelling message.

Well done, Merrie.

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