Professor Mark J. Perry's Blog for Economics and Finance
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I'll tell you right off that I don't know anything about brain surgery. Never tried it. Not even once.And yet I state with complete confidence that Jeffrey Daumer didn't know anything about brain surgery either, even though he had some real world experience.
The problem seems to be that pay may not have anything to do with competence. Just ask those shareholders of the many companies which are in trouble today.
The problem seems to be that pay may not have anything to do with competenceIf you're a shareholder of a company that is overpaying it's CEO, you have options to correct that situation.If you are not a shareholder of that company why do you care?
And you can never get anyone to answer certain questions, like why they rail against CEO pay, but then say nothing about actors making $10 million per film, or former presidents making $7 million for 40 speeches in one year.
Anon 7:26,They also never seem to have anything to say about Oprah, who manages to earn 24x more than the typical S&P 500 CEO. Does she get a pass because she's a Democrat?http://mjperry.blogspot.com/2007/07/excessive-celebrity-pay.html
There is no such thing as overpaid or underpaid. You are worth exactly what the buyer paid you at the time and place you were paid. Nothing else matters, since you agreed to accept the payment by taking it.
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Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan.
Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
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