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.

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  1. david manners
    June 26, 2014 11:25

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

  2. DontAgree
    June 26, 2014 07:50

    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. david manners
    June 24, 2014 16:51

    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. George
    June 24, 2014 15:38

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

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