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> The owners of the company do, and it's paid out of the owners' pocket. This is not true for publicly traded companies - where the board (consisting mostly ex
by sangnoir 7y ago
> The owners of the company do, and it's paid out of the owners' pocket.
This is not true for publicly traded companies - where the board (consisting mostly executives at other companies) determines compensation on behalf of the owners
- WalterBright 7y agoThe board members operate only at the pleasure of the shareholders, so the shareholders ultimately determine CEO pay and are the ones who are paying it. Shareholders can (and often do) sell their stock the moment they don't like what the board and CEO are doing.