by Professor » Fri Apr 25, 2014 11:57 am
CEOs are kind of like salesmen. A salesman's salary is supported by commission, which is based on volume of sales. A CEO's compensation is based upon performance (or expected performance, for a new CEO) of the company. Sure, there are the odd CEOs who are paid well, while their company sinks. But, that's not very common. Most of the time, they're sacked when the company underperforms.