3 ms·

Who do you think decides executive wages?

• eru 5y ago
  Directly: executives higher up. And at the highest level, the shareholders. The last is a bit tenuous because shareholder capitalism is more of an aspiration than reality. But that line of argument could only argue for extravagant CEO pay, not high pay for executive in general. (Especially since CEOs get a lot of their pay in shares, so are incentived to get the shareholders more money; eg by driving lower ranking executives' pay down.) Indirectly: competition between companies and workers (including executives) determines pay.
  • bigbillheck 5y ago
    > (Especially since CEOs get a lot of their pay in shares, so are incentived to get the shareholders more money; eg by driving lower ranking executives' pay down.) This would imply a coupling between corporate expenses and share price that is much tighter than I understand to be the case.
    • eru 5y ago
      But if there's no coupling, than the argument for why ordinary workers' wages would fall also goes out the window. You can't have it both ways.