2 ms·

I think this is a larger discussion and not limited to just a conversation about the pay a CEO gets. Well, of course, a CEO's pay is indicative of what board c

I think this is a larger discussion and not limited to just a conversation about the pay a CEO gets. Well, of course, a CEO's pay is indicative of what board considers as the CEO's contribution towards the bottomline/topline vs the contribution of all employees and when a CEO's pay is so much higher than that of other employees, it is in a sense, a statement that devalues the contribution of other employees. Given that most boards are full of top-tier executives from other organizations, clearly it is in their narrow interests to favor high payouts to CEOs. But that is also indicative of a very high sense of entitlement and so the question is not - what should the ratio be? the question should really be - is the CEO really a team player? and does he/she value the team they have setup and if so how do they honour the team when the company does well and how will they as a team deal with a situation when there is a big downturn in the company? I am not at all arguing for a socialist/communist type of mindset - but there is a point at which the sense of entitlement that CEOs feel that does damage to their own teams in ways that they don't realise. And I say this as someone who is a CEO.

refurb 3y ago
a statement that devalues the contribution of other employees. How is that? The board sets the CEO salary, not the other employees. is the CEO really a team player? I'm confused. So if the CEO is a "team player" then it's ok if their pay is super high?
- pkphilip 3y ago
  > How is that? The board sets the CEO salary, not the other employees. If you pay someone disproportionately higher than others in the same team, what message are you sending to others in the team? When a CEO goes with that decision, they are devaluing their own team
  - refurb 3y ago
    I would say there are a ton of factors that influence how much a CEO gets paid. I worked for a large corporation and the CEO makes at least 100x what I do, but she is also running a company of 150,000 employees, so I don't feel devalued at all. I'm paid quite well.
    - pkphilip 3y ago
      100x is nothing these days. Now the ratio is 399:1 or thereabouts.. and often even higher. Of course, there is no perfect ratio - but there is a point at which it becomes obscene. It varies from organization to organization.

refurb 3y ago

a statement that devalues the contribution of other employees. How is that? The board sets the CEO salary, not the other employees. is the CEO really a team player? I'm confused. So if the CEO is a "team player" then it's ok if their pay is super high?

pkphilip 3y ago
> How is that? The board sets the CEO salary, not the other employees. If you pay someone disproportionately higher than others in the same team, what message are you sending to others in the team? When a CEO goes with that decision, they are devaluing their own team
- refurb 3y ago
  I would say there are a ton of factors that influence how much a CEO gets paid. I worked for a large corporation and the CEO makes at least 100x what I do, but she is also running a company of 150,000 employees, so I don't feel devalued at all. I'm paid quite well.
  - pkphilip 3y ago
    100x is nothing these days. Now the ratio is 399:1 or thereabouts.. and often even higher. Of course, there is no perfect ratio - but there is a point at which it becomes obscene. It varies from organization to organization.