YouSaid · the spoken record

Steven Clifford

lines on the record

104

first

2017-08-25

most recent

2017-08-25

sittings or episodes

1

sources

podcast

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1. “Well, the sales job is effective because when you go through all the steps here, what it does is it greatly increases the CEO's pay. So, of course,”

   2017-08-25 · Masters in Business · Steven Clifford Says You Don't Need a Compensation Consultant · IDENTIFIED FROM THE TRANSCRIPT · source

2. “It came about because the pay consultants started in roughly the nineteen eighty or so. And as they started to get clients, they realized that they had data on what other CEOs were paid. Now, until this time, CEO pay had been established really on the basis of internal equity, how the CEOs pay compared with everybody else in the company. And that's why that ratio 20 to 25 stayed stable from 1945 through late 70s. They came in, they had this data, and it was a great sales tool. So they said, No, you got it all wrong. CEO pay should depend on what other CEOs make. And so what we'll do is we'll establish a peer group and we'll tell you what other CEOs in these comparable companies make.”

   2017-08-25 · Masters in Business · Steven Clifford Says You Don't Need a Compensation Consultant · IDENTIFIED FROM THE TRANSCRIPT · source

3. “Wrong incentives, perverse incentives, but it was also terrible for the country. It was bad for the economy. And so I started doing even more research and everything I did told me this system's insane and it's hurting a lot of people.”

   2017-08-25 · Masters in Business · Steven Clifford Says You Don't Need a Compensation Consultant · IDENTIFIED FROM THE TRANSCRIPT · source

4. “It came about because I was working on boards, these are smaller companies, these aren't Fortune 500 boards. But we were using the same system that the consultants. Put in it, all companies. And as I was sitting there and serving on the comp committee, I said to myself, you know, this system doesn't make any sense. This is a crazy system. And so to I said that to some members of the comp committee and they said, oh, no, no, you don't understand. This is just how comp is done in this country. Consultants have it all worked out. This is how it's done. So I started doing some research on my own to bring my fellow comp com committee members around. And the more I got into it, the more I realized it wasn't just a stupid system that... Gave the CEO the wrong signals and led the CEO to do wrong things wrong.”

   2017-08-25 · Masters in Business · Steven Clifford Says You Don't Need a Compensation Consultant · IDENTIFIED FROM THE TRANSCRIPT · source