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> He is getting a raise because you are getting cost cuts and layoffs. That's literally his reward for saving the company money and pumping up the stock price.
by xattt 4y ago
> He is getting a raise because you are getting cost cuts and layoffs. That's literally his reward for saving the company money and pumping up the stock price.
The mechanics of that maneuver make it seem that staff are being laid off for the sake of creating resources that make compensation possible.
Would there be less layoffs if the compensation package was not as much?
- SoftTalker 4y agoNo. In the grand scheme of Google, the CEO's pay is irrelevant.
- paxys 4y agoLayoffs reduce operating expenses and increase the company's stock price. This means shareholders and board members get richer. And they reward the CEO for it by giving him a large stock grant. So yes, the two have a direct causal relationship.
- foobiekr 4y agoI can tell you point blank that I have participated in layoffs where freeing up opex by LRing people was done _explictly_ to fund increasing the compensation of other team members including higher level manager promotions (and associated pay packages).