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"Obviously, CEOs should be the highest-paid person in an enterprise" Hold on there chap! How is this obvious?
by meindnoch 3y ago
"Obviously, CEOs should be the highest-paid person in an enterprise"
Hold on there chap! How is this obvious?
- lr4444lr 3y agoThey have the highest accountability.
- galleywest200 3y agoBut do they do the most for the company, though? What about those who actually invent their products in R&D, or any of that?
- TheHappyOddish 3y agoI've yet to come across a company that pays the highest output individuals the most. That's not how capitalism works.
- lowbloodsugar 3y agoNot really true. They have the most people beneath them that can take the fall for them. Finance shenanigans? CFO takes the fall. Missed targets? COO or CMO. Major hack? CTO. Etc.
- kccqzy 3y agoThese people with the highest accountability do not hesitate to blame lowly software engineers when it suits them. https://www.theverge.com/2015/10/8/9481651/volkswagen-congressional-hearing-diesel-scandal-fault https://www.theverge.com/2015/10/8/9481651/volkswagen-congre...
- meindnoch 3y agoBut isn't compensation proportional to the cost of replacing someone? I can imagine a bunch of roles that are more costly to replace than "someone with accountability".
- Turskarama 3y agoDo they? They will frequently tank a company and then golden parachute into retirement. This happens all the time.
- ftxbro 3y agothey are at the top of the hierarchy and the top dog eats first
- randomdata 3y agoNot so. The board sits above the CEO.
- grecy 3y agoFor a fun thought experiment: If the CEO go on strike and don't come to work for a month, how many cars will not be built, and how money will the company lose? If the union factory workers go on strike and don't come to work for a month, how many cars will not be built, and how much money will the company lose? Therefore, who is actually more important to the earnings and success of the company?
- burnerburnson 3y agoThat's not an interesting thought experiment at all. The workers in aggregate are clearly more valuable than the CEO alone. That's why their cumulative salary is way higher than the CEO's.
- grecy 3y agoBut why did the CEO's salary increase more than the workers? To keep the equation in check, surely they need to increase at the same rate
- jmye 3y agoWhy? No individual assembly line worker has any particular value - so if the aggregate increases then the equation, in your example, is “in check”, whatever that means. Alternatively, if assembly workers were difficult to effectively replace, they would get paid more. Simply doing some unit of work neither makes that unit of work valuable, nor does it make the person doing it valuable.
- grecy 3y ago> nor does it make the person doing it valuable That is a very sad way to look at human life, and I hope these strikes now and into the future prove that not to be true.
- satvikpendem 3y agoThey obviously mean "valuable" in terms of value to the company, not literal value as a human being. In any case, yes, if someone wants to smash rocks with a hammer, manually, all day, their work would not be valuable to a company building cars, which is what the parent means. Simply doing some sort of "work" for work's sake has no value if that work is not useful.
- burnerburnson 3y agoIt's obviously wrong. NBA teams are a good counter-example. Nobody talks about the team's president/CEO/etc when prognosticating which team will be the best.
- a_f 3y agoDo NBA CEOs get paid less than the highest paid players? I would expect them to get paid more.
- Fluorescence 3y ago> At least 44 NBA players are set to earn more than $30 million in salary for the 2023-24 season, according to ESPN, while only 36 S&P 500 CEOs earned more than $30 million in 2022, according to the AFL-CIO’s Executive Paywatch. Looks like only one NBA GMs is paid over $10M.
- HDThoreaun 3y agoIt's not even close.
- 93po 3y agoI think this may be slightly misleading because the owners of the team serve in many ways that a CEO does in a traditional company. And owners make literally billions off their teams.
- adultSwim 3y agoAfter unionizing, players get half of profits while owners get the other half.
- randomdata 3y agoI would have thought the owner would be the highest paid person in an enterprise. So much for that whole capitalism thing.