If Ryan Cohen took a salary in that leauge the bear thesis would still be alive and the turnaround of GameStop might never happen (or be significantly delayed). My executive chairman has other plans 🙌
If Ryan Cohen took a salary in that leauge the bear thesis would still be alive and the turnaround of GameStop might never happen (or be significantly delayed). My executive chairman has other plans 🙌
Threy are paid wages like everybody else. And a CEO of a fortune 500 company will have special skills that nobody else has. The skills can be learnt mostly. But at companies this big, a CEO is an asset, a good CEO that can provide more growth and profit than anyone else will command a salary, and the market forces ensure that the salary they earn is inline with how much value they bring to the company.
And these people still pay tax, and a lot of it. It’s not possible to argue that a CEO is overpaid because CEO pay at this level is defined by the Market.
You must be disconnected from reality to think like that. What incredible skills do Bezos and Musk have to gain 10000% more than all of their employees combined?
Most businesses thrive despite CEOs, not thanks to them. Worker-owned cooperatives are reliably more stable.
Have you heard of the Panama papers?
Elon Musk and Jeff Bezos are different to people like Tim Cook and Satya Nadella. Bezos took a relatively low salary when he was CEO of Amazon, and Musk takes supposedly no salary, because they don’t earn their wealth from a salary. Tim Cook doesn’t need to be more productive than some factory worker in China making 50 iPhones a day, because if paying him $100mn a year makes Apple $110mn a year vs someone else who takes $50k a year and brings Apple $2mn. They still take Cook because the profit is $10mn vs $1.95mn. Like I said, it’s about who can make the most money for the company.
I am very very sceptical about your claim that most businesses thrive without CEOs. Every medium to large company has a CEO, unless it’s a cooperative in which case they have a chair (and in large cooperatives, these chairs still command high salaries). John Lewis, the largest cooperative in the UK, has a chair who earns a salary of £990k.
And finally some people do dodge tax, not everyone does. In 2016, Tim Cook was awarded a $135mn salary, on which he paid $70mn in taxes. What am I supposed to say to this point really? Some people commit tax fraud, it’s still a crime. Maybe it’s not followed as much as it should be, but it’s still illegal.
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What does this mean? Is it not fact that in the capitalist system of the US, the market is a real thing. It’s not just something people say, it is the economy, and economics is based in mathematics (at least they try to base it in mathematics).
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CEOs of large companies have power because large companies have power, but ultimately the people with the most power are the controlling board members of a company. The board chooses a C level executive’s salary based in what they think that person brings to the table in terms of monetary value, obviously they don’t know for certain, they don’t have a specific number, but for large companies like the ones on this list, it must work pretty well for most of them, or they wouldn’t use this method. Ultimately, the board cares about profit and growth, and they treat the people at the C suite as tools to get that profit. Companies pay a lot of money for something that will make them more money, and so when you think of a CEO as a person you will never be able to justify their compensation, but when you think of them as an object for making profit, you can see how it becomes more justifiable.
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I’m not saying they are at the mercy of their job, how can you be when you have a hundred million dollars. My argument is that CEOs aren’t payed on the same principal that a regular employee is paid, they are paid like a business tool rather than an employee, as if they are some object that generates profit. And I’m sure it helps to be on good terms with powerful people, and being the CEO of a fortune 500 company would make you a powerful person too. But ultimately a CEO is paid according to the value they bring to the company and for that reason alone.
Give up. These conversations are dominated by teenagers who are bringing their vast experience working a shit job for an hourly wage.
They think they’re making some moral/social outcry against a symptom of capitalism, thinking that if we could just cure the symptom, the disease will improve. (Same people say nothing about athlete’s pay, but here we are. LOL, that one used to be a source of public outcry.)
CEOs get these salaries and benefits because the market is willing to pay it, thinks it’s a fair deal. There’s nothing more to it.
If you have a billion-dollar company, and you want the best leadership, you pay for that. Want some dude who says, “Sure, I can handle it. Only need $250,000/yr. I got this.”? Of course not. You want someone with a track record of handling… whatever it is you’re hiring for.
Sure, sometimes they fuck up, just like any employer. But do these people think they’re smarter than the Alpha board of directors?! Yes they do.
And spare me the, “They don’t work 1,000% harder!”. Yeah. We know because it’s obvious to any simpleton. That’s not a point worth making.
And spare me, “The workers should get that money!” Dude was bitching on reddit about American Airlines, their CEO and pay. I did the math. If you stripped him of every penny and spread it around, worked out to $.02/hr. more for each employee.
CEO pay ain’t the fucking problem. It’s only a symptom of unfettered capitalism.
And one last addition to my rant. :)
Listen: People pay you for what you can do for them. That’s how you make money. Hard work barely figures in.
Don’t get me started on making social connections. Somehow these people forget we’re apes and that sort of thing is important.