The Reward/Destruction Sliding Scale

So what’s the reward for helping reduce a $150 billion value company to $7 billion in seven years?

As any fool knows from today’s announcement, it’s $33.5 million – the severance paid to Nokia’s CEO Stephen Elop.

What’s’ the reward for reducing a $15 billion value company to $8.6 billion in nine years?

As any fool knows it’s a new three year contract as CEO which was awarded to ST CEO Carlo Bozotti last week.

Clearly the greater the destruction, the bigger the CEO’s reward.

On this scale of destruction/reward, Bozotti will have to destroy ST’s value much faster if he’s to qualify for a $33.5 million pay-off.



  1. Not invariably DontAgree, you soon realise if a CEO is out for himself or out for his company.

  2. I thought a modest pay CEO is just waiting to jump ship for a high paying job … after the previous CEO got handsomely paid off … but maybe I am just cynical 🙂

  3. Yes George, and there may be a reason for that: Could high pay mean the CEO is in it for himself while modest pay means he’s trying to do the best for the company?

  4. The road to ruin is lined with well-paid ex-CEOs!

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