Abuses by the minority

I'm reading Scott Rosen's interview book of local chief executives titled "Wisdom at the Top: Lessons on Leadership and Life from 35 CEOs." A couple, including Rudy Karsan of Kenexa and Ted Peters of Bryn Mawr Trust Co., did address the topic of abuses by a minority of their fellow chief executives. 

Ted Peters' comments were particularly interesting: "The American people get upset, and rightfully so, when someone runs a company into the ground and then walks away with a huge compensation package. The problem lies not only with the CEOS, but also with boards and compensation committees that are not paying attention and doing their duty to the shareholders.

"We should go to the Japanese or British model," Peters continued, "and set a limit on CEO compensation. In big companies we have crazy numbers. CEOs were traditionally paid 20 or 30 times the average compensation of employees, but in some companies that's moved up to 300 or 50 times the average pay."

Scott Rosen runs the Rosen Group, a staffing agency specializing in recruiting and placing human resource professionals. I've interviewed him and his staffers many times over the years, because their organization is great economic indicator. The more companies that turn to agencies like Rosen's for help in hiring recruiters, the better the economy is looking.

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