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How much value you provide determines the upper bound of your salary. Supply of people willing and able to do the work determines the lower bound.
by brlewis 10y ago
How much value you provide determines the upper bound of your salary. Supply of people willing and able to do the work determines the lower bound.
- pg314 10y agoIt's the upper bound if you assume perfect information and a perfectly efficient market. It's often hard to measure the value an employee provides, which means there is imperfect information. If you look at CEO compensation, which is determined by the board, often staffed with friendly CEOs from other companies, it doesn't look like an efficient market either.