The amount that executives get paid (Especially when connected to efficiency levels) says you are dead wrong. They do get to keep the profit. High the profit margins, the higher their bonuses, the higher their salaries when renegotiating.
The board only gets their information from who, exactly? The executives. Who run the business day to day and who actually have more of a vested interest than the board. The board of directors doesn’t magically aquire this data. They get it from the executives who are hired with the sole purpose of running that business in the best possible way to maximize profit and revenue for the board.
You wrote a good general description but you completely missed my point.
The amount that executives get paid (Especially when connected to efficiency levels) says you are dead wrong. They do get to keep the profit. High the profit margins, the higher their bonuses, the higher their salaries when renegotiating.
The board only gets their information from who, exactly? The executives. Who run the business day to day and who actually have more of a vested interest than the board. The board of directors doesn’t magically aquire this data. They get it from the executives who are hired with the sole purpose of running that business in the best possible way to maximize profit and revenue for the board.
You wrote a good general description but you completely missed my point.