tag:blogger.com,1999:blog-8152901575140311047.post5904785945229951154..comments2024-03-29T07:41:47.433-04:00Comments on Musings on Markets: Is your CEO worth his (her) pay? The Pricing and Valuing of Top Managers!Aswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-8152901575140311047.post-13560831416801858252015-05-27T13:25:42.818-04:002015-05-27T13:25:42.818-04:00How do individual investors by proxy (by way of la...How do individual investors by proxy (by way of large index funds become active? Seems like big ETF/Index funds aren't in a good position to be activistsAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-33385159929939718952015-05-15T11:16:07.460-04:002015-05-15T11:16:07.460-04:00Very interesting article Professor!
Regarding the...Very interesting article Professor!<br /><br />Regarding the Sales/Capital ratio, <br />I went into the spreadsheets and couldn't figure out why you used 3.55.<br /><br />In the Global Industry Averages (tab), Software companies range from 0.88 to 1.03.<br />I also computed MSFT Revenues/Equity and got an average of 1.11.<br /><br />Am I missing something?<br /><br />RegardsBillnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-59141735024598684732015-05-01T08:35:16.531-04:002015-05-01T08:35:16.531-04:00How did you arrive at $670 million per year as val...How did you arrive at $670 million per year as value for MS CEO? Thanks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-36822032618963440342015-04-30T00:52:37.715-04:002015-04-30T00:52:37.715-04:00Excellent article professor! A little elaboration ...Excellent article professor! A little elaboration on a specific determinant of CEO pay is merited here. The market for managerial talent mostly comprises of the top management directly under the CEO, since the search costs for identifying external managers fitting the CEO role are quite high, and that is why companies prefer to groom CEOs internally. Even then, CEO's pay acts as a motivator for the top management to compete for CEO's position. I believe this can actually incentivize the top management to compete through their respective team's performance for the highest prize i.e. CEO's managerial power and compensation. Too little can be demoralizing, and too much can drain resources. I see that internal labor markets also have an important role to play in deciding pay for the CEO.Anonymoushttps://www.blogger.com/profile/01831103716779869262noreply@blogger.com