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One creative theory I heard is that a rational benefit of seemingly-irrational executive pay is to incentivize harder work among the people who desire to be exe
by gnicholas 4y ago
One creative theory I heard is that a rational benefit of seemingly-irrational executive pay is to incentivize harder work among the people who desire to be executives. Not sure if it makes sense or not, but it's an interesting possibility.
- lordnacho 4y agoOnly works if the would-be CEOs are themselves irrational. You can't seriously be expecting to outcompete thousands of other prospective CEOs.
- gnicholas 4y agoIt would only really apply to companies that promote from within. That could motivate a few dozen people who have a shot at becoming an executive in their career at the company.