4 ms·
How does that matter ? Compensation is compensation. It is still money she gets to spend, don’t you think the board and she calculated the potential increases a
by manquer 3y ago
How does that matter ? Compensation is compensation. It is still money she gets to spend, don’t you think the board and she calculated the potential increases and bargained accordingly? Does it not cost the company and shareholders the same whether paying in options or cash [1]
Shall we tie all workers compensation to a high base + lots of options ?
- 2020 profit $13.672B
- 2021 profit $17.878B
- 2023 profit $20.981B
- 2023 profit $22.344B
Yet GM cannot afford to give 10% year on year hikes for next 4 years ?
If management is responsible for profits then they are responsible for the losses too do they return money back in bad times ? Of course not , they will just negotiate more options to compensate for low price . Do you think she will stay and work even one year at her base compensation level of 2M ?
hypothetically let’s say the better salary is going to cost GM 10B a year . The profit would halve and stock would crash , it would still be a healthy company with 15B in profits but management and shareholders will be pissed, would it bad outcome for society or the company ?
In a unregulated capitalist ecosystem, the company will always pay the bare minimum, the shareholders and management incentives will not allow anything else .
Look at Apple for even starker example, most valuable company on earth unimaginable profits every year yet they pay their retail staff peanuts and don’t give them basic benefits because they can and the market expects them to.
[1] It does , all else being the same - They could have sold the stock for the same money in the market, or simply not diluted everyone with new issues and increased the stock price to reflect that.
- sokoloff 3y ago> How does that matter ? It matters because words have meanings and using words correctly facilitates effective discussions.
- abwizz 3y agoyea, but hiding behind the differences in meaning does also not help effective discussion. i get where you're coming from, but also sympathize with the position of "if the compensation changes in value, the value of the compensation has changed" maybe time to question this whole stock option thing for c-suite and just grant all employees a similar share of company performance
- sokoloff 3y agoThe text upthread that started this was “GM CEO salary went up from 23M to 29M between 2021 and 2022.” That is both wrong and misleading. Wrong for obvious reasons, but misleading because the nature of salary is that statement suggests that someone (the board or compensation committee) made an explicit decision to change their salary from $X to $Y.
- phonon 3y agoUAW members already get a profit sharing bonus! "Today’s announcement that eligible UAW-Stellantis members will receive a record average profit-sharing amount of $14,760..." "Ford...members are expected to receive an average of $9,176 in profit sharing." "UAW members who work for General Motors received the news that they may receive up to $12,750 in profit sharing" https://uaw.org/tag/profit-sharing/ https://uaw.org/tag/profit-sharing/
- abwizz 3y agoime a lot of companies do this, but most don't also phrasings like "average" and "up to" tend to obstruct an important part of the picture (i.e. the common worker)