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"The reasons CEOs make millions is because their performance is directly measurable in how well their company did that year." They make millions because they n

by sangaya 18y ago

"The reasons CEOs make millions is because their performance is directly measurable in how well their company did that year." They make millions because they negotiate a contract that says so, irregardless of performance. They're able to get that contract due to the perception that with them leading, the company will make more money than if they weren't. It's essentially a bet the company is making on the CEO, because even if the CEO drives the company into the ground the contract is still in place.

jimbokun 18y ago
They make millions because the people determining their pay are CEOs of other corporations with a vested interest in keeping the average CEO salary as high as possible.
- mkramlich 18y ago
  Agreed. I think there are multiple factors but I'm positive that is the largest single factor. Basically they get that much because they can. I actually have a more complex and subtle theory to explain it involving a system to keep feudal aristocracy alive in the modern age, but I'm afraid it is too involved to describe in the tiny page margin space I have remaining. (Only half-joking!)
jacoblyles 18y ago
They make millions because the market price for a CEO's services are very high.
dawie 18y ago
The point I want to make is that I think it's rediculous to not negotiate for raises and salaries. That is what a free market does. The link captures what Paul said 5 years ago and it's the point I was trying to make. That some people are more productive than other people and that they should be payed accordingly. http://www.paulgraham.com/gap.html http://www.paulgraham.com/gap.html In the United States, the CEO of a large public company makes about 100 times as much as the average person. [3] Basketball players make about 128 times as much, and baseball players 72 times as much. Editorials quote this kind of statistic with horror. But I have no trouble imagining that one person could be 100 times as productive as another.

by sangaya 18y ago

jimbokun 18y ago

They make millions because the people determining their pay are CEOs of other corporations with a vested interest in keeping the average CEO salary as high as possible.

mkramlich 18y ago
Agreed. I think there are multiple factors but I'm positive that is the largest single factor. Basically they get that much because they can. I actually have a more complex and subtle theory to explain it involving a system to keep feudal aristocracy alive in the modern age, but I'm afraid it is too involved to describe in the tiny page margin space I have remaining. (Only half-joking!)

jacoblyles 18y ago

They make millions because the market price for a CEO's services are very high.

dawie 18y ago

The point I want to make is that I think it's rediculous to not negotiate for raises and salaries. That is what a free market does. The link captures what Paul said 5 years ago and it's the point I was trying to make. That some people are more productive than other people and that they should be payed accordingly. http://www.paulgraham.com/gap.html http://www.paulgraham.com/gap.html In the United States, the CEO of a large public company makes about 100 times as much as the average person. [3] Basketball players make about 128 times as much, and baseball players 72 times as much. Editorials quote this kind of statistic with horror. But I have no trouble imagining that one person could be 100 times as productive as another.