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We can reduce CEO compensation then. There's your money from something.
by wavefunction 13y ago
We can reduce CEO compensation then. There's your money from something.
- danielweber 13y agoAlthough CEO pay has lots of problems, that money is coming from shareholders, not employees. Picking WalMart (just because they are such an icon of this), if you zero'd out their CEO pay and distributed it to employees, each employee would see a raise of 20 cents a week.
- yummyfajitas 13y agoCEO pay is generally an insignificant fraction of labor costs. Suppose we split the pay of Walmart's CEO (about $20M) between Walmart's 2M employees. That's $10/year per employee.
- wavefunction 13y agoSure, if you apply it in such a simplistic manner. Why would you give $10 to the guys making 6 figures as well? Whatever, Walmart encourages its employees to apply for food-stamps and other transfer payments so their economics are already all f'd up.
- yummyfajitas 13y agoHow much do you believe the average low skill walmart could receive if we redistributed the CEO's pay? $20/year? $40/year?
- fnordfnordfnord 13y agoThat's a specious argument. It's pretty easy to see that CEO pay (the entire pay package, not just salary) is often closely tied to corporate profits, often in ways that incentivise short term gains over longer term strategic planning.
- yummyfajitas 13y agoWhat's wrong with incentivising short term gains? If anything, CEOs and corporate management in general tend to overvalue long term gains, so financial incentives for short term benefits probably push incentives back closer to optimal.