View Full Version : is it reasonable that CEO gets millions in bonus when their salary is only 600K?


Apple9485
06-27-2004, 10:26 PM
if Goldman Sach CEO is getting over 50 millions in bonus, does it mean their company isn't doing so bad and therefore we should invest in GS since it's stock has been beaten down big time in the last couple weeks?I just don't understand how is bonus so much more than their actual salary.

NetAdvisor7117
07-05-2004, 05:56 AM
We'll I wouldn't base my investing on who got bonuses and high pay.Look at Countrywide's Chair Mozilo.GS is looking interesting. I can't make any recommendations here, but I know some traders feel they might beat expectations on their upcoming earnings. http://www.cnbc.com/id/23468809This is speculation mind you.GS has not pre-reported any warnings so far which is a good sign.We will know soon enough.Also:Most bonuses are tied to stock options. If the stock performs, they get options which could be worth a lot. In the case of companies like GS, it is a partnership, and the partners get a percent of the profits as a bonus in the year in which they made x dollars.The reason GS is down is because they are a financial stock. And all financial stocks are being beaten with the ugly stick right now. Positive upside earnings could boost the stock, but I'd sell on the strength. Short sellers will do the same. Watch.

NateV
07-12-2004, 01:25 PM
Yes, a good CEO can employee hundreds of thousands of people, dramatically increase the value of their company, and just overall generate a huge amount of money for the city, state, nation, and world economy. I like to think of big time CEO's like star athletes. It takes talent that very few have and they should be compensated accordingly. When all is told, that 50 million will be a very minuscule amount of the money that GS generates.

Spockrhp8473
07-19-2004, 08:54 PM
well, a good bartender or waiter makes more in tips than they're paid in salary. so does the porter who helps with your bags at the airport.so the CEO gets enough to live on, guaranteed, and the rest of his income is subject to whether the firm does a good job under his direction -- seems reasonable to me.as to speculating in GS shares based on the size of the CEO's bonus ... seems odd to me and that doesn't mean it might not work just fine -- just that I hadn't thought of it

allen24620016328
07-27-2004, 04:23 AM
No Way should he get that kind of money.. sheesh take a look at Eisener... of Dis.. years ago. and then look at the ceo at Enron or Crazy Eddie... Of course I had that.. why not.. it was a great ad.. and thats all...

higueramark
08-03-2004, 11:53 AM
Ask that at the next shareholder meeting...if you do buy stock in the company!