My Friend Ja-Nae Duane posted a link to a HBR article on Google Plus this morning:
Tackling Business Problems
Integrate Your Marketing With Your Purpose
Thanks mainly to provisions linked to performance, CEO compensation has skyrocketed in recent decades, while its correlation with actual corporate performance has remained as weak as ever. This has been most true in the U.S., where among the S&P 500 the ratio of average CEO pay to average employee salary went from about 40:1 in the 1970s to 325:1 in 2010. The ratio isn’t as extreme in most other countries, but the trend is the same. Below the top level, mismatches between pay and performance aren’t so acute. [emphasis mine, Ed.]
Getting paid for performance is the only way to make things work. The trick is that the performance metrics have to be honest. Here is the kicker in that article, which the authors don’t seem to consider to be the root of the problem in the first place:
“CEO compensation has skyrocketed in recent decades, while its correlation with actual corporate performance has remained as weak as ever“
If there is no apparent correlation between actual corporate performance and the compensation of the people responsible, then someone is cheating, robbing and looting.
The Great Thanksgiving Hoax
Each year at this time school children all over America are taught the official Thanksgiving story, and newspapers, radio, TV, and magazines devote vast amounts of time and space to it. It is all very colorful and fascinating.
It is also very deceiving. This official story is nothing like what really happened. It is a fairy tale, a whitewashed and sanitized collection of half-truths which divert attention away from Thanksgiving’s real meaning.
The official story has the pilgrims boarding the Mayflower, coming to America and establishing the Plymouth colony in the winter of 1620-21. This first winter is hard, and half the colonists die. But the survivors are hard working and tenacious, and they learn new farming techniques from the Indians. The harvest of 1621 is bountiful. The Pilgrims hold a celebration, and give thanks to God. They are grateful for the wonderful new abundant land He has given them.
The official story then has the Pilgrims living more or less happily ever after, each year repeating the first Thanksgiving. Other early colonies also have hard times at first, but they soon prosper and adopt the annual tradition of giving thanks for this prosperous new land called America.
The problem with this official story is that the harvest of 1621 was not bountiful, nor were the colonists hardworking or tenacious. 1621 was a famine year and many of the colonists were lazy thieves.
In his ‘History of Plymouth Plantation,’ the governor of the colony, William Bradford, reported that the colonists went hungry for years, because they refused to work in the fields. They preferred instead to steal food. He says the colony was riddled with “corruption,” and with “confusion and discontent.” The crops were small because “much was stolen both by night and day, before it became scarce eatable.”
It wasn’t until the colony instituted a program of “plant and grow your own food or you can starve on your own” that things started to get better. In fact, a lot better:
In 1614, Colony Secretary Ralph Hamor wrote that after the switch there was “plenty of food, which every man by his own industry may easily and doth procure.” He said that when the socialist system had prevailed, “we reaped not so much corn from the labors of thirty men as three men have done for themselves now.”
Getting into GTD
