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Emotionally I agree — what could these people be doing to uniquely add millions of dollars of value? However, the fact that they aren’t replaced with cheaper op
by pinkmuffinere 1y ago
Emotionally I agree — what could these people be doing to uniquely add millions of dollars of value? However, the fact that they aren’t replaced with cheaper options is (imo) pretty good evidence that they are uniquely worth that pay. If there was a cheaper option, the board of directors would replace the CEO, and enrich themselves and other shareholders with the saved money.
Either way, that’s kindof disconnected for the CEO of this bloodbank. Their opportunity cost is quite high. They choose to work for comparatively low pay, but have a positive impact on the world.
- GuinansEyebrows 1y agoi think i understand where you're coming from, but i think you're begging the question a little bit (ie, ceo pay is high because it is high). i do think it's more likely that the executive class has a vested interest in keeping their own pay high (not just CEOs, but board members as you've mentioned), and they've got a lot more class solidarity than the rest of us, though they'd never put it that way - it's just The Way Of Things, you know? divide and conquer. i should maybe mention that i'm a public employee and my "opportunity cost" is also relatively high, but... hell is hot, and i want to be able to sleep at night.
- kortilla 1y agoThe board and shareholders are not made of CEOs. They are compensating the CEO highly because it’s giving them stock returns. If that correlation doesn’t exist, then investors should be able to easily drive CEO comp way down.
- triceratops 1y agoThe boards of most public companies are made up mostly of C-level executives of other public companies. Retail shareholders hardly ever get involved to a sufficient degree to fire boards.
- eru 1y agoWhy would retail shareholders need to get involved? That's what we have eg corporate raiders for.
- mordae 1y agoThe strongest predictor of you wage is physical distance to the CEO outside business hours. The second is physical distance to the CFO. Since CEO is with them all the time, it follows they get the most.
- pinkmuffinere 1y agoI don’t think this is a rebuttal of my point above, but I do think it’s a very interesting claim! Could you link a study/article about this?