[lbo-talk] the extractors

[Wojtek Sokolowski]

> Overall, total cash compensation in 2002, including salary, 
> bonus and other direct payments, rose nearly 17 percent, to a 
> median of about $1.2 million, in 2002. The median figure 
> represents the point at which there are an equal number of 
> chief executives above and below.
> 
> The bigger salary and bonuses in 2002 came in a year when 
> corporate profits continued to stagnate and the Standard & 
> Poor's 500-stock index, a broad indicator of the market, 
> dropped 23 percent.
>

I call it the Mosquito Intake Theory of Executive Compensation (MITEC) .
Mosquitoes do not have lungs, so they cannot suck liquid on their own.
The amount of blood they take in depends solely on the pressure of the
blood vessel to which they manage to tap.  Ditto for corporate
executives.  They cannot generate any wealth on their own.  Their
compensation is determined by the amount of other people's money they
control and from which they skim a portion for their own benefit.

Wojtek