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Not just a nit, profits aren’t paid as salaries. The high profitability of the big tech cos is /despite/ the high salaries they pay. > increasing concentration
by paulsutter 8y ago
Not just a nit, profits aren’t paid as salaries. The high profitability of the big tech cos is /despite/ the high salaries they pay.
> increasing concentration of company profits going toward the salaries of a select few
- dgoldstein0 8y agoTrue, but really high profits also enable them to pay higher salaries. Obviously they don't put all their profits into salaries.
- paulsutter 8y agoHigh margins allow high salaries. Any money put into salaries is not profits it’s an expense. This may sound like a nit but it’s important because they have high profits despite high salaries. It shows the lopsided value of well managed network effects businesses.
- liftbigweights 8y agoYou are correct. Salaries are actually liabilities for companies. Profits are used to pay dividends to shareholders, not to pay the salaries.