Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.
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.Tags: Carlo Bozotti, CEO Stephen Elop., Sliding Scale