4 ms·

Pay correlates with power not effectiveness. The highest paid in any organizations are those with the most power and the highest paid CEOs are those who run the

Pay correlates with power not effectiveness. The highest paid in any organizations are those with the most power and the highest paid CEOs are those who run the biggest corporations.

maerF0x0 11y ago
I dont understand how they get that power. I guess they convince those with lots more money to give them that much? I mean, if all the science is true, how does someone with so much money (say a board of directors) ever decide to pay someone that much? Clearly they're all ignoring the facts, but why? They dont seem to have anything to gain by paying someone too much, afterall their own stock/equity is at stake here.
- dingaling 11y ago
  > how does someone with so much money (say a board of directors) ever decide to pay someone that much Most of the board will be executives in other companies; by voting high the salary of the CEO, they're nudging the average which benefits them when wearing their executive hat. In the UK I have money in two Building Societies ( mutual banks ) and each year the members vote on candidates for the Board. It's amazing how many of them hold three or more different board positions and a couple of executive slots.
- sjg007 11y ago
  The board of directors are usually all highly paid execs. Like votes like. Also to get a CEO to change jobs or even promote (from another company), they have to offer an attractive package. Then stocks are a force multiplier.
- crdoconnor 11y ago
  >I dont understand how they get that power. Connections. Yale/Harvard network, Ex-McKinsey network, We're-on-the-board-of-five-public-companies network, Family, etc. >I mean, if all the science is true, how does someone with so much money (say a board of directors) ever decide to pay someone that much? Mutual back scratching, favor exchange and membership of the in-crowd.

4 ms·

Pay correlates with power not effectiveness. The highest paid in any organizations are those with the most power and the highest paid CEOs are those who run the

by crdoconnor 11y ago

Pay correlates with power not effectiveness. The highest paid in any organizations are those with the most power and the highest paid CEOs are those who run the biggest corporations.

maerF0x0 11y ago
I dont understand how they get that power. I guess they convince those with lots more money to give them that much? I mean, if all the science is true, how does someone with so much money (say a board of directors) ever decide to pay someone that much? Clearly they're all ignoring the facts, but why? They dont seem to have anything to gain by paying someone too much, afterall their own stock/equity is at stake here.
- dingaling 11y ago
  > how does someone with so much money (say a board of directors) ever decide to pay someone that much Most of the board will be executives in other companies; by voting high the salary of the CEO, they're nudging the average which benefits them when wearing their executive hat. In the UK I have money in two Building Societies ( mutual banks ) and each year the members vote on candidates for the Board. It's amazing how many of them hold three or more different board positions and a couple of executive slots.
- sjg007 11y ago
  The board of directors are usually all highly paid execs. Like votes like. Also to get a CEO to change jobs or even promote (from another company), they have to offer an attractive package. Then stocks are a force multiplier.
- crdoconnor 11y ago
  >I dont understand how they get that power. Connections. Yale/Harvard network, Ex-McKinsey network, We're-on-the-board-of-five-public-companies network, Family, etc. >I mean, if all the science is true, how does someone with so much money (say a board of directors) ever decide to pay someone that much? Mutual back scratching, favor exchange and membership of the in-crowd.