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Okay, I want to hear how CEOs wage goes up leads to employee wages going up without something like trickle-down coming out. That causal mechanism is completely

Okay, I want to hear how CEOs wage goes up leads to employee wages going up without something like trickle-down coming out. That causal mechanism is completely unobvious in my mind.

simianwords 1y ago
CEO wages increasing are due to competition amongst a few candidates who have the experience and competency required to run a big organisation and this drives up the wages. If you have a company you want the best person to run it and if the best person costs a lot you might still want to hire them. Why do you think they are being paid that much? Its because the company gets back way more than they spent on the CEO wages. Profits increasing for the company is a good thing - you can use it to further improve your company by hiring more people or hiring better people by paying them more. Profits increasing is also good for the country - more taxes collected.
- Draiken 1y ago
  What a load of crap. CEOs are elites that were born into money in the majority of cases. They fail upwards while not doing any real work and reaping the benefits from the thousands that do. Yes a CEO has an impact on the business but so does everyone else. Ultimately he's one more piece of the puzzle and absolutely nothing can justify this salary gap. Anyone with any sliver of common sense knows they aren't worth 400x more than everyone else. Fire the CEO and the company continues. Fire all your workers and let's see what happens. If anything the real reason they're paid so much is so the shareholders have an easy scapegoat to fire (with their golden parachutes) while pushing for short term profits as much as possible.
  - simianwords 1y ago
    What does paying them a lot have to do with scapegoat? Instead of paying them 50M pay them 200k? Why not?
    - Draiken 1y ago
      These are rich people hiring rich kids exactly to extract as much money as they can from the companies. A huge salary or bonus is the best way to do that regardless of company performance in the long term. Take a look at this: https://www.theyrule.net/ https://www.theyrule.net/ These CEOs are sons, brother in laws, cousins, friends, etc. from the same group of people that populate the boards. The corruption at the top is absolutely blatant and that's where huge chunks of money generated from the folks that actually do the work ends up. There are even studies on companies that self-organize without CEOs being more efficient than "regular" companies. The sad truth is that having a dictator at the top of every company is not as good as people make it out to be. You may get a good dictator, but it's way more likely you don't.

Okay, I want to hear how CEOs wage goes up leads to employee wages going up without something like trickle-down coming out. That causal mechanism is completely unobvious in my mind.

simianwords 1y ago

CEO wages increasing are due to competition amongst a few candidates who have the experience and competency required to run a big organisation and this drives up the wages. If you have a company you want the best person to run it and if the best person costs a lot you might still want to hire them. Why do you think they are being paid that much? Its because the company gets back way more than they spent on the CEO wages. Profits increasing for the company is a good thing - you can use it to further improve your company by hiring more people or hiring better people by paying them more. Profits increasing is also good for the country - more taxes collected.

Draiken 1y ago
What a load of crap. CEOs are elites that were born into money in the majority of cases. They fail upwards while not doing any real work and reaping the benefits from the thousands that do. Yes a CEO has an impact on the business but so does everyone else. Ultimately he's one more piece of the puzzle and absolutely nothing can justify this salary gap. Anyone with any sliver of common sense knows they aren't worth 400x more than everyone else. Fire the CEO and the company continues. Fire all your workers and let's see what happens. If anything the real reason they're paid so much is so the shareholders have an easy scapegoat to fire (with their golden parachutes) while pushing for short term profits as much as possible.
- simianwords 1y ago
  What does paying them a lot have to do with scapegoat? Instead of paying them 50M pay them 200k? Why not?
  - Draiken 1y ago
    These are rich people hiring rich kids exactly to extract as much money as they can from the companies. A huge salary or bonus is the best way to do that regardless of company performance in the long term. Take a look at this: https://www.theyrule.net/ https://www.theyrule.net/ These CEOs are sons, brother in laws, cousins, friends, etc. from the same group of people that populate the boards. The corruption at the top is absolutely blatant and that's where huge chunks of money generated from the folks that actually do the work ends up. There are even studies on companies that self-organize without CEOs being more efficient than "regular" companies. The sad truth is that having a dictator at the top of every company is not as good as people make it out to be. You may get a good dictator, but it's way more likely you don't.