3 ms·
i dont understand why ceos get paid so much. companies are always trying to cut costs -- we see outsourcing to mexico and massive layoffs fairly frequently -- b
by bronz 10y ago
i dont understand why ceos get paid so much. companies are always trying to cut costs -- we see outsourcing to mexico and massive layoffs fairly frequently -- but ceos never seem to get cut as a cost. when one is fired another is hired and paid just as much. 40 million for being the ceo? how is it possible that you could never find someone who could do the job just as well who would take 20 million?
- astrodust 10y agoWhen you hire the people that determine your compensation, not hard to get rich.
- derefr 10y agoBut the board hire the CEO. This would explain highly-paid board members, but not highly-paid CEOs.
- fahadkhan 10y agoCEO of big companies sit on the board of other big companies.
- astrodust 10y agoOften the CEO is so influential they get to pick the board, especially if the CEO is also a large shareholder. Even if they're not in as dominant a position they can pressure out the less desirable members of the board and install those that are more sympathetic.
- manigandham 10y agoBecause that is what the job is worth and it's a miniscule amount of what the company earns and pays out to the rest of the employees (in total). Nobody seems to complain when their favorite sports athlete or movie star gets paid millions so why is a CEO any different? You have to put aside the amount itself (which just seems large since it's such a big number for many) and realize how the economics of it workout.
- reustle 10y ago> Nobody seems to complain when their favorite sports athlete or movie star gets paid millions I see people complain about this all the time, especially with pro athletes
- tluyben2 10y agoThey made $99 million losses in 2015. Sure 42m is tiny compared to 1.09b rev, but it's half of their losses which does feel weird. If you made losses, why are you compensated at all with bonuses? But this was obviously negotiated a while ago but it seems strange when that happens. If your favorite sports athlete or movie star does not perform year after year they are not going to get millions.