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Yes, that's my simple explanation for the hugely disproportionate salaries CEOs earn. Two possibilities: 1. They are somehow superhumanly increasing the compa
by yters 7y ago
Yes, that's my simple explanation for the hugely disproportionate salaries CEOs earn. Two possibilities:
1. They are somehow superhumanly increasing the company's bottom line
2. They target companies with enormous amounts of money and intentionally influence their salary to become very large, independent of their job performance
Insofar as #2 is possible, that seems the most plausible explanation for large CEO salaries. Unless the people determining the CEO's salary are somehow completely firewalled off from his influence, it is hard to see how #2 is not possible.
- s1artibartfast 7y agoOr 3. CEO's are superhumanly capable of DECREASING the company's bottom line. The board is paying to minimize their risk of ruin. With consistent good management, mature organization should hope to see incremental growth. Bad management can destroy a company overnight.