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> The point: executive pay at the largest companies has grown wildly disproportionate to the value any one executive adds, especially next to the people who gen
by Closi 2mo ago
> The point: executive pay at the largest companies has grown wildly disproportionate to the value any one executive adds, especially next to the people who generate the actual output.
Disagree with this statement.
Take Walmart (as a boring example):
- 'People who generate output' cost: likely c$70bn per year in USA
- CEO 'Executive' Compensation: $27.4m
CEO compensation is probably 0.03% of the workforce cost.
Arguably a good CEO will add more value than a 0.03% increase in 'people who generate the actual output'
- miltonlost 2mo agoThat CEO is sure sticking a lot of shelves themself to provide value
- Closi 2mo agoQuantity of shelves stacked isn't a typical measure of value in an organisation. If a CEO can help lead the team to make shelf stacking easier (e.g. pre-sortation, introduce self ready packaging, lower delivery quantities to reduce need to work overs, reduce planogram changes etc) and that reduces headcount, that's real value.
- nathas 2mo ago> Arguably That's doing a lot of lifting. I think you could make a 50/50 decision at the CEO level for most decisions, and merely by making a decision faster the org would have better profit outcomes.