Big paydays on Wall Street often come under laserlike scrutiny, while Silicon Valley gets a pass on its own compensation excesses. Why the double standard?
The typical director at a Standard & Poor’s 500 company was paid $251,000 in 2012, according to Bloomberg News. Mr. Schmidt [Google's CEO] is above that range by over $100 million.
... The latest was the criticism of Jamie Dimon’s pay for 2013, given the many regulatory travails of his bank, JPMorgan Chase. The bank’s board awarded Mr. Dimon $20 million in pay for 2013, $18.5 million of which was in restricted stock that vests over three years. ... For one, the outsize pay for Mr. Schmidt doesn’t square with Google’s performance. Putting aside the fact that he is not even the chief executive, Google had net income of $12.9 billion last year. JPMorgan was higher at $17.9 billion....
On pure economics, Mr. Schmidt appears to be receiving an inordinate amount. By every measure, JPMorgan is bigger, with more profits. And yet Google awards $100 million to its chairman and there is nary a peep.
Maybe the bigger question is why is CEO pay so entirely disconnected from company performance?