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There is an equation with an equilibrium: CEO's pay rate = (some multiplier) * median salaried worker's pay rate OR CEO's pay rate = (some multiplier) * mini
by tysam_and 3y ago
There is an equation with an equilibrium:
CEO's pay rate = (some multiplier) * median salaried worker's pay rate
OR
CEO's pay rate = (some multiplier) * minimum salaried worker's pay rate
We've been conditioned to think it's not fair somehow, but the discrepancy is just....engorgingly terrible. I'm not arguing for how this metric would be enforced, only that it would be a good one to have. Especially in a time when greed is the lowest common denominator in the race to the bottom for some of these large corporations.
It wouldn't fix the stockholder "value" chase, but at least it would shore up one part of the system weak to corruption.
- hinkley 3y agoIt's also been suggested that Congressional salaries be a fixed multiple of minimum wage, and for similar reasons. Honestly I think that would probably fix things a lot faster.
- skyyler 3y agoCongress already makes more money from cutting deals with their power & influence than they do from their salary...
- amrocha 3y agoYes that should be illegal too.
- astrange 3y agoIf you underpay elected officials then 1. they just start taking bribes 2. only rich people will run in the election. This is why Singapore pays them even more than we do. Anyway, minimum wages (despite being ok policies) aren't what people are actually paid, and of course aren't especially what non-working people are paid. And remember that non-working people, namely children and the elderly, are poorer than workers.
- hinkley 3y agoTHEY ALREADY DO Nobody said the multiple has to be 5. It could be whatever the current ratio for Singapore is.
- lnxg33k1 3y agoI am always suprised at how people think that elected official then have to get bribes in order to survive like its a doctor prescription, and how it seems that when they do we can’t do anything about it ffs
- Alupis 3y agoJust look at most countries around the world. Corrupt elected officials is more of the norm, than the anomaly world-wide.
- astrange 3y agoThey mostly don't, people just like being cynical. Though, legislators don't have individual power to take action to be worth giving specific bribes to; what may happen is that if someone is friendly to your business, you want to keep them motivated to keep re-running for Congress and do the awful annoying job of being a legislator, when they could instead quit and go back to industry or retire on the beach or whatever.
- nerdponx 3y agoIt's like selling your data to ad tech companies. They'll do it no matter how much you pay for the product.
- astrange 3y agoThey don't, but the important point is: > 2. only rich people will run in the election. Which is not true unless you think AOC is rich. It's not unheard of that congresspeople sleep in their office i.e. are homeless because DC rent is high. https://www.npr.org/2022/12/09/1141635119/the-first-gen-z-member-of-congress-was-denied-a-d-c-apartment-due-to-bad-credit https://www.npr.org/2022/12/09/1141635119/the-first-gen-z-me...
- Alupis 3y ago> suggested that Congressional salaries be a fixed multiple of minimum wage That's insane no matter how you look at it. Minimum wage is paid by individuals, private businesses and their owners. Congressional pay is paid for with your money - an effective infinite of your money, or they'll just poof new money out of nowhere to continue to pay themselves. Correlating the two is plain wrong.
- bagels 3y agoPeople in congress are millionaires, and it's not from congressional salaries. It's due to it being somehow legal for them to insider trade, and bribes in other guises.
- IG_Semmelweiss 3y ago100% agree. Serving in public choice should for duty, not a career. Make a fixed salary. If you dont like it, get a job elsewhere just like everyone else. And oh, you wont get qualified candidates - nonsense. We had a movie actor, a silver spoon heir, a community organizer, a real estate broker and a lifelong politician as presidents. There's nothing in technical expertise that they have in common. They were just good orators with some charistma and a penchant to lie with a smile...on their face. Oh, you are worried of a bribe? Good thing we have FEC disclosure forms etc. Make them audited every year. Have more bite. Increase sentences. Put bounties on whistleblowing. Then sit back and relax
- cj 3y agoIMO an equation like that would be fine as long as you made it possible for CEOs of larger companies to make more money than CEOs of small and medium sized companies. There’s a job market for C-Suite employees (whether we care to admit it or not). At a certain point you won’t get qualified candidates if you can’t reward them enough, same as engineers or any other role. The answer for how much CEOs should be paid is the amount of money you would need to pay to employ the most optimal person to run the company. Figuring out what that number is is difficult.
- skyyler 3y agoWell that's simple, larger companies that want to pay their CEO more can pay their lowest paid employees more.
- deleted 3y ago[deleted]
- burnerburnson 3y agoThat's moronic. A good CEO at a fortune 500 company could have a $100M revenue impact. That same CEO could never be worth $100M to a local restaurant. The idea that the bigger company can't offer more to attract a better CEO just because both businesses employ janitors that make market rate is mind-numbingly stupid.
- tbrownaw 3y agoI thought janitoring was all contracted out these days.
- tpush 3y agoBut the fortune 500 company can offer more for its CEO. It just has to pay its janitor more. Which it totally can, being a fortune 500 company.
- skyyler 3y agoIf they can afford to pay the CEO 100M they can afford to pay above market rate to the janitors, no? Do you have arguments or are you just going to call someone a “doo-doo head”?
- pizzafeelsright 3y agoWhat about CEO pay * Widgets shipped? I always think "I can clock out at 5pm" or "If I screw up it'll only cost me my job and not 1,000 people their jobs" C levels deal with stuff I am not interested in and the while the pay is appealing the added life complexity is not. Thus I W2 while seeing my kids 90+ hours a week.
- ryukoposting 3y agoI would love it if my brokerage would show me that multiplier for the companies I invest in.
- chadash 3y agoThe problem with this is that the CEO of Walmart is a much more important job than the CEO of McKinsey but under this formula they would get paid a fraction of the amount, no matter how well they did for Walmart workers. The end result of this situation would probably be a mad dash to automate away any blue collar work, which may not be such a great thing. It’s a tough problem.
- umeshunni 3y ago> The end result of this situation would probably be a mad dash to automate away any blue collar work, which may not be such a great thing. More typically, this results in the outsourcing/contracting away of lower value work.
- amrocha 3y agoThe CEO of Walmart doesn't do anything for the Walmart workers, he works for the investors. I would say it would be a huge upgrade to get rid of investor CEOs and put in a worker CEO in place instead.
- syndicatedjelly 3y agoWho decides how important a company is to the economy?