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E. Hunter Harrison earnings nearly doubled

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[quote]QUOTE: Originally posted by Saxman There is no doubt that the compensation received by Mr. E. H. is obscene to the average worker. However, to the stockholders and board of directors who pay his salary, he is worth the price. After all he makes them money! That is why HE is the CEO. Stop making money for the shareholders and BOD's and you will not be the CEO. The part that rubs many of us who work for CN the wrong way, are the interest free loans that he receives that are forgiven. Why on earth would an individual who makes this kind of money need interest free loans? Another issue would be the club membership fees of $250,000. I guess it's just the "perks" of being at the top. Mr. Harrison compensation is just one of many examples of current business practices that have lead to the ruination and decline of American business. [/quote] Interest free loans and other non-salary payments are often merely ways around various taxes similar to the way options (now largely disfavored) work. They are indeed an executive perk. CEOs like Mr. Harrison are paid based upon the performance of their company in some large part. That is the major reason Harrison is doing so well, CN is probably the most efficient of the Class 1s at the moment. I can't speak to how he treats the employees, but it sounds as though at least some of the issues with discipline have been relaxed after the recent strike. I know well working for a different Class 1 what lousy mean spirited disciplinary action can mean. I also know that railroad employees are pretty well paid compared to other industries. I think that how you view the pay of the CEO is a matter of scale and value. Everyone has their opinion and welcome to it. LC
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