tag:blogger.com,1999:blog-8817171247555815363.post3582142730631300037..comments2024-03-26T05:57:44.937+00:00Comments on True Economics: Economics 17/9/10: Busting some myths on CEOs compensationTrueEconomicshttp://www.blogger.com/profile/07350536454228478974noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8817171247555815363.post-75877981392104600482010-09-22T00:08:06.848+01:002010-09-22T00:08:06.848+01:00I just noticed you on Vincent Brown and Googled yo...I just noticed you on Vincent Brown and Googled you to see what to expect.... <br /><br />Cut Social Welfare and leave the poor CEO's alone!!! <br /><br />Going by this and your defence of John Cochrane that I see on the right hand side you seem out of touch with Economic realities! <br /><br />Cochrane claims that he and the students of Fama all know about “fat tails” in financial markets, and maybe they did and do. But the guy is the author of a widely used advanced textbook, _Asset Pricing_, many hundreds of pages long, which does not mention the phenomenon of “fat tails” once. It is just la la land stuff. He and Fama long pushed the “strong” version of the efficient market hypothesis, which says that prices reflect fundamental values(property!!). Now they are claiming only to push the weaker version, which basically says that it is hard to beat the market. Duh. <br /><br />Fair enough Krugman is a clown too but Cochrane has made a bigger fool of himself than any other Economist in the last few years and he's had serious competition for that! <br /><br />The Question I have for people still in thrall to the Chicago Boys is: what real world events would have to happen in order for you to admit that you got it all wrong?Kaiser Souzeenoreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-68262734363480540002010-09-17T21:52:49.672+01:002010-09-17T21:52:49.672+01:00"due to significant share of compensation of ..."due to significant share of compensation of CEOs being in the form of stock and stock options, in many years, many CEOs actually experience losses in terms of their overall compensation, not gains."<br /><br />I find that hard to believe. Why would a CEO excercise a losing stock option? They wouldnt.<br /><br />As regards a loss in the value of their stock, its something that happens to everyone not just CEOs. We dont offset those losses against our salaries and claim we "experienced losses in our overall compensation". Thats just bullshit.<br /><br />As an engineer who's worked in lots of different companies, its clear to me that most CEOs are parasites who contribute or produce little of value for their companies. They are just good at fooling shareholders into allowing them to enrich themselves at the others expense.<br /><br />German capitalism proves that a democratic workplace is the most productive.LibertarianAtheistRationalistnoreply@blogger.com