Who Should Set CEO Compensation?
Todd Schoenberger says CEOs are not overpaid.
- Duration 8:11
- Date Apr 19, 2012
Todd Schoenberger says CEOs are not overpaid.
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Here's the prop I don't know because -- okay take you take Jim Jones whoever whomever what -- ex CEO of XYZ company yes.
The you're looking at the salary right now you're not talk about the sacrifices that you engines had to take to get to that -- that level.
Number two it doesn't matter with the S&P 500 -- If they're returning shareholder value -- they are doing what the right thing is that there aren't ways that they're working 24/7.
I'm sick and tired of always people coming out.
Saying -- CEOs are paid too much money this is not a jobless stocking shelves these people are around the clock sarbanes -- the -- sign off what every.
Single financial report.
Yet they're gonna be the ones are saying all of their pay too much according to what.
What are they paid.
And our you know just when you say that's me I'm down the CFO of -- coming out the big company that remain nameless very well and he is.
On the plane Tony for seven.
Is divorced never -- children out I mean has no life.
You know life -- -- -- now he can say am CFO of the big fortune 500 yeah so you point is a good one -- -- married to their job.
They argue sacrifice some lives from a personal perspective to be the CEO of a fortune 500 company.
And the fact is is that what are they paid -- where -- that even relevant right now because we're when I grew up it was always taught that you work hard.
You wanted to accomplish things -- do -- well I think -- Lloyd Blankfein you don't want to demonize right.
Bide your work and sort of get to that level Lloyd Blankfein started in the Melbourne at Goldman Sachs said he worked his way up he went to Harvard school Harvard Business School we -- actually paid its own way people and yet here's a guy because Goldman Sachs is Goldman Sachs and you got these clowns -- he's opted to the New York Times and everybody's just going -- in the senate.
And I want to move on top that let me ask you one more thing what about -- The companies that are in the toilet and they shall there's and there are CEOs -- again -- hand over -- that don't buy their products them by their stock what difference does it make that.
Go out and start picketing the place I don't know.
That's up to the board of directors and the employees this is America you don't have to work in these companies you don't have to buy that stock that you don't like -- they get out of and at great cost of freedom segment by the way.
Because -- are back and forth on this thing and -- you know you make a great point if you don't agree with the way you're CEOs being paid don't -- -- -- -- gas then and look at other products we'll all look.
Meet a client this is it now I know you gonna tell me because I love your picks because they're so in the top selling -- -- realm.
We -- the beauty of what the -- hello my company times you're consistent.
You're consistent with your thoughts thank you Eurasia everything but -- can't say never but and you probably you agree with me -- -- -- up with you know it's like picking the winning team GAAP.
Gaps in yankees fans -- whoever -- Well aware that the -- -- markets go up 200 doubt there's a ton of points that everybody's -- -- on TVS to buy at bought in a market went down where are these people I have a word when you have the.
A quick when you think of this market.
-- is this Europe is this bad economic data out what is this OK the market right now that -- to be down 10% of it wasn't for earnings right now let's give credit where credit is still not much you know earnings are doing very well over 80% of S&P 50000 companies reporting so far had been in -- Wall Street estimate yet but is that because as I mentioned and are so -- yeah -- -- -- -- Yes it's a brilliant point that that's exactly what it is however they -- that is something.
That we can at least the bulls are saying look this is good -- we see some earnings growth that's taken place right now we're -- at 3% earnings growth rate up quarter over quarter.
One year ago though where it's double digit so it is slowing you and I.
Well we we could talk about quantitative -- till the cows come home but but can you at least.
Can we at least say that part of the reason these companies are doing so well -- their balance sheets are so shored up is because well we pumped money into the system.
And they took and it it yet that's -- right.
They kept it and that they haven't -- -- at the expense -- teeming capital -- you can look at this you can look at the unemployment rate you can look at the the -- 120000 jobs and it's stuck in quicksand.
Shadow labor report.
So when you look at all but yes that does help a company's bottom line it helps them -- their earnings per share number because don't have the overhead costs.
Then you can exceed as Wall Street estimates and that's what we're seeing right now then can you also argue that these warnings are sort of -- While I only used to work state.
However what let's just say they are they are on -- manipulating to the higher side -- put it that way.
You are you will they're not doing anything wrong they wouldn't be there though is that wire for the Q planted these that's one part of that yet you can say that about I think you can right I mean I know we cost cut to the -- -- Puppet company's pundit well these is -- -- -- summit cost cut -- so much yeah.
Yeah but there is an element of.
Hey we -- cheap money available to us we -- get that the issue that you have though is when you look at the revenue numbers you have to wonder.
And where is suspending going to come from a -- that is out of control.
I mean the wasn't for the ECB right now the what took place in Europe and what's important for the central banker but there intervening would probably be in a global depression right now.
Now again as Europe is just don't understand want means -- at this point.
-- and we had our own version of European print yes we have OK -- -- stock picks because again I think.
This all comes down to like I wanna say it's -- cheap consumer but it's the frugal consumer.
McDonald's Buffalo Wild Wings Coinstar.
I mean -- food McDonald's and Buffalo Wild Wings and I am -- -- -- And -- -- gal that I mean that there's a whole that this election out of stocks right now that really mimic the US economy.
The thing about mcdonalds they report their number tomorrow the quarterly confessional -- before the open.
Pay close to tackle another business -- -- that you feel free to use it I might set.
-- thought process bedding down of this number of what's gonna be unique about it is dead date 40% of their revenues come from York.
Now just last month they talked about.
There -- there how the restaurants have been doing.
And they actually showed a decrease for the first time in Europe right so it's going to be interesting to see when this report comes out because don't you don't just wanna look at that earnings per share number of they'd be.
That's great -- realistically they're make an eighty cents -- of -- -- off their drinks anyway and profit margin.
They they should -- that number but where is the European number where the revenue because when you dissect that data.
What's it gonna show because -- Europe is really bad and this is going to be a proxy for this.
We'll know tomorrow it's not about a Spain debt offering RE IW just look at simple hamburgers and French Fries.
But when you look at that McDonald's report if they are suffering in Europe that's gonna just have a ripple effect for them.
You if -- it also point and I remember -- -- -- -- 40% of their sales are your 40% of GUS isn't it I don't you think of McDonald's via all American.
Out of their oil and then link if Simon Italy wind -- name what I think done while.
I got to tell you Tracy you know -- in Europe but here's a thing that's it's a hearing in this country of the taboo to go out -- date.
So if somebody -- out of date to go to -- we like eight -- like go to McDonald's mud in your -- it's actually supposed to be fully acceptable so they're gonna go to McDonald's.
So the for your viewers there.
Let's would you -- beloved yeah.
-- and apple leads Hillary and you never make another comment Thursday -- end -- -- -- well at least I love that yet the numbers and revenue growth.
I always like to look at companies went down without revenue growth and I news you've seen every now.
Thirteen and a half percent year every years instead what for the past three years now that's excellent -- excellent company.
Definitely something considered you look at for growth all three of them are right there plus points start Buffalo Wild Wings report their quarterly -- next -- so.
You're looking for a little bit pompous and they have shown a lead and -- -- -- uptrend right before and earnings reported.
I love that you -- here especially for the Peter Barnes thing you have to come on the at the end with us at 2 o'clock our -- I AM -- -- -- seconds is there any time the enemy out there as we got to do this I love this are right time sitting in -- managing director of the black think group think you.
Thank you can chime in on the CEO thing I -- -- that would.
Are you about to happen -- a.