Warren Buffett: Overreaching

“The job of the board is to get the right CEO, to prevent that CEO from overreaching. Because sometimes you have some people that are very able, but they still want to take it all for themselves. But if they take nothing and they’re the wrong CEO, they’re still a disaster. So low pay itself is not the criteria. So you want the right CEO. You do not want them overreaching. And then I think the board needs to exercise independent judgment on important acquisitions, because I think CEOs — even smart CEOs — are motivated, frequently, in acquisitions by other than rational reasons.”

—Warren Buffett.

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