Part 6/8:
Both Buffett and Munger engaged in a broader critique of corporate America's compensation practices. They lamented the increasing disconnection between the remuneration of top executives and the actual contributions they make to their organizations. This reflects a troubling trend where wealth generation benefits a select group rather than aligning with company performance or shareholder interests.
Buffett emphasized that the current state of corporate compensation, rife with inequities, begs for reform. He argued that while they are not averse to high compensation for exceptional contributions, the present systems often reward mediocrity and even poor performance, which he finds outrageous.