3 ms·
i 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 m
by GuinansEyebrows 1y ago
i 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.