4 ms·

Further, if you price cap a CEO companies will just make a new position. If you price cap all employees, companies will just make multiple companies and have t

by toolz 7y ago

Further, if you price cap a CEO companies will just make a new position. If you price cap all employees, companies will just make multiple companies and have the leader work multiple jobs. People love to complain about loopholes, but it's feel good legislation ideas like this that empower the people willing to manipulate the system in the first place. If your legislation allows the manipulators to make the most money, you're effectively saying that's what you value the most in society.

Spooky23 7y ago
A 4 star general in the US Army makes something like $300k a year in total compensation. From a value of labor perspective, it’s hard to fathom that the Carnival Cruise Lines CEO is worth $12M annually on the basis of ability. Clearly a premium is being paid for something. Since society worships at the altar of shareholder value, public companies should be required to release data justifying how compensation maximizes shareholder value. For a cruise line, it obvious how paying some filipino able seaman poverty wages advances shareholder interest. And obviously the CFO likes the idea of having line workers from third world countries with limited rights whenever possible. But it’s unclear what the value of the $12M CEO is. What is the expected performance of a $1M CEO?
- arethuza 7y ago
  The Royal Navy used to have adverts that said that as a the Captain of a UK Trident sub you could make £100K a year (mind you this was a few years ago) - my genuine reaction was "I don't think that's enough". NB UK nuclear weapons don't have permissive-action locks - they don't need any code from HQ to be able to launch or for the warheads to work. They are completely under the control of their crews so being the captain of one of these subs is quite a responsibility.

4 ms·

Further, if you price cap a CEO companies will just make a new position. If you price cap all employees, companies will just make multiple companies and have t

by toolz 7y ago

Spooky23 7y ago
A 4 star general in the US Army makes something like $300k a year in total compensation. From a value of labor perspective, it’s hard to fathom that the Carnival Cruise Lines CEO is worth $12M annually on the basis of ability. Clearly a premium is being paid for something. Since society worships at the altar of shareholder value, public companies should be required to release data justifying how compensation maximizes shareholder value. For a cruise line, it obvious how paying some filipino able seaman poverty wages advances shareholder interest. And obviously the CFO likes the idea of having line workers from third world countries with limited rights whenever possible. But it’s unclear what the value of the $12M CEO is. What is the expected performance of a $1M CEO?
- arethuza 7y ago
  The Royal Navy used to have adverts that said that as a the Captain of a UK Trident sub you could make £100K a year (mind you this was a few years ago) - my genuine reaction was "I don't think that's enough". NB UK nuclear weapons don't have permissive-action locks - they don't need any code from HQ to be able to launch or for the warheads to work. They are completely under the control of their crews so being the captain of one of these subs is quite a responsibility.