DIGGER27
In Memory Of
I will grant you that it is true for many, but not all. When you have a malignant narcissist in charge that will put his/her own image/personal wealth above so they can keep up with the other CEOs in their umm... waving contest, that is a problem.
A lot of CEOs are much like professional athletes. They measure their self worth by how much they get paid, not how they perform. If someone is making more than they are, it is a personal affront to their self worth.
CEO's get paid a ton of cash because there are not a lot of people who can do the job. It is the whole supply and demand. Any one can sweep a floor so the labor costs are minimal. Very few people can run a company. Sadly, Boards are paying CEOs based upon their name as opposed to what they can do. Because a CEO had success in one company and or industry, doesn't mean they can do the same in other companies and industries.
JCPenney certainly hired the wrong guy.
He was supposed to be their savior....instead he screwed them up even worse.
http://www.theverge.com/2013/4/8/4202474/jcpenny-fires-apple-store-ron-johnson-from-ceo-position