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I think this misses one important point though: why would any human being need this amount of money and could these resources be allocated better? If we look mo

I think this misses one important point though: why would any human being need this amount of money and could these resources be allocated better? If we look more broadly than a single employee or a single business entity fwiw, this feels like a huge waste of resources.

satvikpendem 3y ago
Compensation is not about need, it's about supply and demand. If I as a Google shareholder could pay 225 million to receive billions in profit and thereby drive up the stock price and my stock value, then I'll take that deal, and that's how every other shareholder thinks, too. Because if not, then they could simply vote to not pay for the CEO's compensation.
erik_seaberg 3y ago
We want our best decision makers launching and backing companies, not retiring because that's all they're able to do. Musk and Bezos need more competition.
- effingwewt 3y ago
  JFC, stop putting them on a pedestal. I've said this before but it bears repeating: CEO's aren't special. Bob Iger came back to Disney to finish it off. Shit, look at Elizabeth Holmes. No one deserves that much of a multiple over the people actually creating products or value. When CEO's fail they get golden parachutes. When they get lucky they are praised as some sort of rare superhuman. The cult of CEO and HR needs to wither and die
  - ztrww 3y ago
    I do agree in principle but it’s not that obvious to me if overall it would be much better if all the surplus went to the shareholders instead. At least CEOs generally have to actually work for that money.. > CEO's aren't special some CEOs are terrible, a lot are mediocre and a few are indeed special and worth every penny they get and much more (from the utilitarian/rational point of the company’s shareholders). The problem is that it’s very hard to tell in advance..
tester756 3y ago
I think that: Not many people can actually perform this job. This kind of job requires really solid skillset across various domains. It feels like you not only need to be great at managing people, doing business, doing politics (the real one), having vision, but also do not be bullshitter, so your employees believe in you. Meanwhile, CEOs strategies aren't something you can test within a month or two and fire CEO and get a new one. In some industries you need at least a few years in order to see whether specific "bet" was good, so you aren't going to fire your CEO after half of the year. Meanwhile CEOs decision can have very very costly impact on the company, so the risk is huge.

satvikpendem 3y ago

Compensation is not about need, it's about supply and demand. If I as a Google shareholder could pay 225 million to receive billions in profit and thereby drive up the stock price and my stock value, then I'll take that deal, and that's how every other shareholder thinks, too. Because if not, then they could simply vote to not pay for the CEO's compensation.

erik_seaberg 3y ago

We want our best decision makers launching and backing companies, not retiring because that's all they're able to do. Musk and Bezos need more competition.

effingwewt 3y ago
JFC, stop putting them on a pedestal. I've said this before but it bears repeating: CEO's aren't special. Bob Iger came back to Disney to finish it off. Shit, look at Elizabeth Holmes. No one deserves that much of a multiple over the people actually creating products or value. When CEO's fail they get golden parachutes. When they get lucky they are praised as some sort of rare superhuman. The cult of CEO and HR needs to wither and die
- ztrww 3y ago
  I do agree in principle but it’s not that obvious to me if overall it would be much better if all the surplus went to the shareholders instead. At least CEOs generally have to actually work for that money.. > CEO's aren't special some CEOs are terrible, a lot are mediocre and a few are indeed special and worth every penny they get and much more (from the utilitarian/rational point of the company’s shareholders). The problem is that it’s very hard to tell in advance..

tester756 3y ago

I think that: Not many people can actually perform this job. This kind of job requires really solid skillset across various domains. It feels like you not only need to be great at managing people, doing business, doing politics (the real one), having vision, but also do not be bullshitter, so your employees believe in you. Meanwhile, CEOs strategies aren't something you can test within a month or two and fire CEO and get a new one. In some industries you need at least a few years in order to see whether specific "bet" was good, so you aren't going to fire your CEO after half of the year. Meanwhile CEOs decision can have very very costly impact on the company, so the risk is huge.