8 ms·
If they have 350 employees, then they double the company's profit, I suppose they just generated 350x times the value of an average employee. If they have more
by EnigmaFlare 2y ago
If they have 350 employees, then they double the company's profit, I suppose they just generated 350x times the value of an average employee. If they have more employees, they only need to increase it a smaller proportion to be generating 350x as much value.
- lesuorac 2y agoDoubling profit is relatively easy. If you have 10M of revenue and 9.5M of expenses then an increase of 500k in sales doubles your profit. Given that everybody in the company is needed (for sake of argument) to produce the initial 10M I wouldn't say that the CEO inking a new sale for 500k is worth the entirety of the original company.
- overrun11 2y agoYour example assumes 100% gross profit margins which is unlike any company I've ever heard of.
- carlosjobim 2y agoYes, if the 350 employees kept working the same as usual, and the only thing that changed was something the CEO did, not anything he ordered the employees to do.
- EnigmaFlare 2y agoWhy that restriction? Deciding the direction employees work in is part of the CEO's job. If he directed them badly (say, to work on a project that fails because he misjudged the market), the company would make less money and it would be the CEO's fault.
- carlosjobim 2y agoWhy should the employee with the CEO title get a raise for increasing company profits, while the employees without the CEO title do not get a raise for increasing company profits? > the company would make less money and it would be the CEO's fault. It would be the CEO's fault, and the workers who were not at fault would be fired when the company needs to tighten the belt.