Bonus Babies 0
Roger Lowenstein discusses the robber barons. A nugget:
In the coming proxy season, you will see executives getting huge raises and justifying it on the basis that their stocks and profits are up. But a CEO’s impact is felt over many years — not just one. A single up year doesn’t warrant a big bonus if the longer-term performance was mediocre. Nor is simply riding a stock down and then up again cause for celebration. When a batter in baseball slumps to .200, he doesn’t deserve a bonus for getting his average back to .250.
