BC Ferries CEO earns $1 million
January 17, 2011
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BC Ferries CEO earns $1 million according to this article.
I’m sure David Hahn works very hard, has a lot of responsibilities and probably made great improvements to BC Ferries. But $1 million seems a bit high and probably wouldn’t be this high in a true free market. The problem is that the board of directors or whoever decide on their compensation, don’t have enough vested interests in the company’s profit.
If BC Ferries was privately owned by a chinese restaurant owner with his own money on the line, he would definitely not be paying $1 million. The chinese restaurant owner will want to maximize BC Ferries’ profit and will definitely look a lot harder for someone else, qualified to do his job, who is willing to work for a less than $1 million. And something tells me that there’re plenty of talented people who are willing to handle Hahn’s responsibilities for a little less than his salary.
I’m not trying to pick on David Hahn, because there are plenty of overpaid CEOs out there. But this is just an example of where there’s no true free market at upper echelon of the corporate word. If David Hahn’s position was exposed to true competition, I’m sure the compensation could be a lot lower.