The Best Job In Corporate America
Being a fired CEO is quite possibly the best job in America. In fact, the bigger the company and the greater the mess, the greater the reward for having screwed things up and let go.
Non-compete Agreements, leaving on neutral terms, and willing to let wrongful termination suits pass – being fired as a CEO is a pretty good gig. Multi-year severance, stock options, acceleration of financial benefits, extension of medical coverage, continuance of auto allowances…often these are things that continue, even after the failed CEO has left. It's like a big pay off to keep your mouth shut and hold confidence.
We all know the saying "The greater the risk, the greater the reward." But it seems "The greater the mess, the greater the reward" applies too.
Does it seem fair to you? Should a CEO, the person with the greatest direct impact to success in a company, be rewarded for screwing up the business and being let go? Or should the CEO get the standard package everyone else gets when the ax falls?
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By Steve Rucinski, June 5, 2006 @ 4:18 pm
Great post! Most CEO have the severance terms defined before they even accept the position and for a public company is usually made public. The minimum I have seen in such agreements is 2 years of pay upon release. A good deal if you can get it.
By Anita Campbell, June 6, 2006 @ 7:45 am
Add to that the outrageous compensation levels in general for CEOS, and you have one heckuva job. As if a CEO really contributes 500 times more than the average employee. Hmph!