2 ms·
When Ford went public around 1956, the man who ran that got $250,000, about $2.8 million today, with much higher taxes than today. But he also got a thank you
by JJMcJ 3y ago
When Ford went public around 1956, the man who ran that got $250,000, about $2.8 million today, with much higher taxes than today. But he also got a thank you letter from Henry Ford II, so he had that going for him.
That was the largest IPO at the time, very complicated. I believe all the shares offered publicly were held by the Ford Foundation, for complicated tax and dynastic reasons.
But the main point here is how little the manager of the offering received. Imagine that today. $2.8 million would be nothing.
- geraldhh 3y agoare you saying that it was not proportional and thus unfair or that it was too much because he likely was just doing his job as an accountant?
- JJMcJ 3y agoThat these kinds of financial activity were not as massively rewarded as they are today.
- ztrww 3y agoI’m not that sure that a higher proportion of profits going to the shareholders would be a better outcome. Sure the money saved by paying the CEO less might result in lower prices or go to lower ranked employees but it’s not obvious to me that that’s necessarily what would happen.