CEO compensation - page 2
by dzadzey, BSN, RN | 4,158 Views | 31 Comments
The other day, our CNO and VP of Human Resources came to our unit to discuss issues and concerns we have regarding our unit, the hospital and our jobs. I brought up the topic of CEO compensation. Over a six year period, our... Read More
- 14Apr 30, '12 by David13Quote from HM-8404I completely disagree with this. I think the CEO could probably disappear tomorrow and no one would even notice that he/she was gone. They trot out that old "indispensable" line every time someone questions their outrageous salaries. At the very least, they are just as replaceable as anyone else in the organization.Looking at this solely as a business decision I understand the reason you were given. As much as we like to pat ourselves on the back any "worker bee" can be replaced by the end of business the same day. The company will never miss a beat, there will be no major changes that have to be made during the adjustment period. A CEO on the other hand is quite different. Using the hospital setting as an example, how hard would it be to replace a single nurse, respiratory therapist, even physician? Now, how easy would it be to replace the CEO of a hospital? One with the experience not to totally destroy the profits of the hospital. Don't forget that is where your pay comes from. The CEO will have at the least an MBA with 15+ years experience and a proven track record. How many of the nurses that complain about the pay discrepancy stopped with an ADN? I would equate this to the career CNA/PCT complaining about the pay difference between them and the RN. I would guess your advice to the CNA would be to stop complaining and do what I did to get where I am.
- 6Apr 30, '12 by MN-NurseQuote from dzadzeyYour CEO kept your wages flat and put the savings in his pocket.The other day, our CNO and VP of Human Resources came to our unit to discuss issues and concerns we have regarding our unit, the hospital and our jobs. I brought up the topic of CEO compensation.
Over a six year period, our wages have been flat with inflation taken into account. Over a similar six the CEO of our health system saw a nearly 23% increase in compensation
- 3Apr 30, '12 by MN-NurseQuote from KyrshamarksPlease do some research on the background of wealthy CEOs. You can't just pick one and go, "Look, a poor slave from Elbonia can be a CEO!" Look at ALL of them.If you think it is so easy being a CEO then nobody is stopping you from becoming one yourself.
Hint: people have already done this and found that while anybody theoretically CAN become a CEO, not "just anybody" actually does for a variety of reasons. Start your research at "The Fundamental Attribution Error."
I'll wait here.
- 0Apr 30, '12 by cally527I understand how you feel, but from a business perspective her answers are correct. A CEO is responsible for the entire business. While we all would like to think that we could run a hospital or entire healthcare system, it is not that easy. Just one bad decision on his/her part can literally cause the downfall of an entire corporation. 1 bad choice could bankrupt the company, cause 100's of layoffs.
Also, keep in mind that a CEO is not an employee at will. They have a contract that specifies pay, raises, bonus structure, benefits, perks, etc. So the company must comply with the contract or risk losing a large amount of money in court fighting a breech of contract lawsuit. Most CEO contracts are written for 5 or 10 year terms so what is happening now might not have been foreseen when the contract was drafted.
- 6May 1, '12 by woohHow irreplaceable are you? For the answer I like to look to who has to show up during inclement weather.
Does being a good CEO take talent and strong business skills? Absolutely. Are those talents and skills is so rare that it requires the exorbitant compensation packages that CEOs are able to demand? Not even close.
- 6May 1, '12 by chaka_1709I agree that CEO's do hard work but really, million dollar salaries and outrageous bonuses while the workers are barely making a living. Greed, greed, greed. It is why our country is in economic turmoil right now. CEO's could cut their salaries to more realistic number and then use that money to hire more workers and give raises to the current workers.
- 6May 1, '12 by cally527Quote from hey_suzLol, very well said! Healthcare SHOULD be more than just a business. It should be about HEALTHCARE only.I always though healthcare was more than "a business." I think that's the worldview from which a lot of this ire stems.
The unfortunate reality is that it is very expensive to provide the level of healthcare that we have come to expect in the United States. From the cost of drugs (another conversation altogether) diagnostic equipment and supplies, to the cost of the expertise of the people that use the equipment, provide a diagnosis etc. Not to mention general overhead costs such as utilities, maintenance etc.
I have a Bachelor's in Business so I understand that side of the situation which is why I commented. While I understand the foundations of business and the scope of responsibilities of the CEO, COO, CFO etc I also have trouble understanding why companies waste so much money on upper management salaries, bonuses and perks. These upper management positions should be compensated for their expertise and skills but not at such astronomical rates.