I wrote recently about the importance of luck in the career of an executive. This interesting article from the London Times this morning discusses the impact that good fortune can have on executive pay.
When a rising tide lifts all ships, it's harder for a CEO to fail. Should that not be reflected in compentation plans?
We often hear chief executives say they are “only focusing on what we can control” or “not interested in what our rivals are doing”. These are useless platitudes. As one retail executive said to me last week: “We try to operate the best shops possible but what can we do if footfall to the shopping centre we are in is down 10 per cent?” Likewise, a retailer stands no chance if the shop next door is selling the same products for half the price.