Don't you think the pay structure of the CEO is unfair towards workers who work harder than CEO?
- Thread starter Claudia Love
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Actually numerous studies have shown that luck is a key component of most of the CEOs. Computer simulations economic studies etc.
Where luck plays the least amount is in unethical practices ENRON for example, but the Boiler room scam is typical of most stock houses.
How does the Boiler Room work?
You take a 1000 of your new clients. You tell half of them to buy and half of them to sale a stock. Drop the half you where wrong about after a week.
Repeat with 500 drop half again
250 repeat drop half again
125 drop half again
62 or 63 repeat
about 31. Now after a few trades you been right 6 times in a row building supreme confidence. Now milk these clients for all there worth your a GENIUS. Half will go broke, and half will make it big. Your get a commission each time, and a huge CEO salary. If you can stop getting caught (it legal but . . .) or no laws are changed then you deserve your millions.
Repeat with a new batch of a 1000 till you get fired and have to do the same at another company.
The fact is you could hire 3 people for 1/100 of the salary and there do a better job but there spin powers will not be on par.
CEO generally do have one talent, they are with ethics and given another role of the dice would be serial killers.
On a personal level I known a few CEOS - the ones that work one hour a year for a full salary twenty or so boards. Sometimes three days. Three days work is really worth a full years pay? Really?
The fall guy might be the one exception, at least he knows he go to jail for his pay eventually.
For one, making the assumption that a CEO works less hard than a lower level employee is ridiculous. This is an assumption that many people who have not worked in upper management make. CEOs often work incredibly long hours, have to deal with extreme stress management, and possess a knowledge base that most don't have. It's ironic that I've seen people who regularly griped about management being lazy get promoted due to union "promote from within" mandates, only to find they can't handle the workload.
That isn't to say there aren't problems with compensation, and with particular CEOs, because there are. Salaries operate on supply and demand, just like most other western market systems. That means there's plenty of non-skilled grunt workers getting paid little, and very few high-skill upper management workers getting paid big bucks. The scarcer the resource, the more it's worth.
You can place a limit on that by enacting law (say....the company's highest paid worker can't make more than 100x its lowest), but it's tricky for two reasons: one is factoring in all non-salary benefits and another is creating such a law in isolation when other countries do not, thus making your country less desirable to produce in.
The bigger concern for me is the average public sector salary versus private. Public sector averages more than a 10% premium and, more alarmingly, that doesn't factor in much more generous benefits. That premium is paid for by private sector workers who are already making less on average.
CEO’s are a dime a dozen. Most get swelled heads, and have a fairly common “Masters of the Universe” complex.
Truth is, demographics and and markets have more to do with a companies success than its board of directors.
Being a record exec during the 60’s, 70’s, and 80’s was probably lucrative. Tons of record buying baby boomers. Then by late 80’s the boomer were out of college and not buying records. Gen X did not have the numbers to sustain sales at the same pace. Record stores and labels took a massive hit. They guys that were called genius’s in 1980 were likely being blamed in 1990… when really it was simply a demographic shift.
When the boomers started having kids, mini van sales skyrocketed.
When the boomers hit 30, and needed their first pair of glasses…. One Hour Lens Crafters
Schools were built in the 50’s and 60’s… closed in the 90’s, and now retirement homes and communities are all the rage.
Demographics. A company is guaranteed to make money with the right demographics.
And real estate agent during a housing boom will gladly tell you his success came from hard work, and knowing his business… yet during downturns, it’s suddenly the “market” is the reason he is not making money.
Now…. There are a few exceptions. Some CEO’s build a company from the ground up. Jack Welch restructured GE and made crazy money. Most CEO’s step into a role of an existing company…. They would not be capable of building there own if they were ever let go. Lol
Anybody who says a CEO is worth a $47 million exit package like the Mc D’s paid are fools.
Truth is, demographics and and markets have more to do with a companies success than its board of directors.
Being a record exec during the 60’s, 70’s, and 80’s was probably lucrative. Tons of record buying baby boomers. Then by late 80’s the boomer were out of college and not buying records. Gen X did not have the numbers to sustain sales at the same pace. Record stores and labels took a massive hit. They guys that were called genius’s in 1980 were likely being blamed in 1990… when really it was simply a demographic shift.
When the boomers started having kids, mini van sales skyrocketed.
When the boomers hit 30, and needed their first pair of glasses…. One Hour Lens Crafters
Schools were built in the 50’s and 60’s… closed in the 90’s, and now retirement homes and communities are all the rage.
Demographics. A company is guaranteed to make money with the right demographics.
And real estate agent during a housing boom will gladly tell you his success came from hard work, and knowing his business… yet during downturns, it’s suddenly the “market” is the reason he is not making money.
Now…. There are a few exceptions. Some CEO’s build a company from the ground up. Jack Welch restructured GE and made crazy money. Most CEO’s step into a role of an existing company…. They would not be capable of building there own if they were ever let go. Lol
Anybody who says a CEO is worth a $47 million exit package like the Mc D’s paid are fools.
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Also these folks who think CEOs dont work harder than the average person have clearly never been a CEO. The idea that it can be automated is hilariously ignorant.
Or the old fashioned way. They were smart, worked hard in school and went above and beyond on the way up to please their bosses in their initial jobs.
Success is the intersection where preparedness meets opportunity.
How many CEO case studies are you aware of? I suspect none directly and few from myths.
With the exception of handful of CEO's like Bill Gates I don't know who actually worked above the pale for there jobs. Unlike an Olympic athlete which has to work there asses off the job itself is fairly easy - a bunch of lawyers playing poker and charging clients for billable hours might make them rich but it does not make them "hard working" or deserving. It makes them smart at playing the system.
But even if we look at the decent job set - why should a great doctor make minimum wage in one part of the world and in another enough to buy a private plane for the same work? Obviously the PM is under paid, if he was a CEO - and let face it any PM can be a CEO - he the boss of several CEO of crown corps - he make 10 times the money he makes now at minimum. So we should be demanding politicians get paid more NOW! How can we expect them to treat there job seriously when where basically paying them 1/10 minim wage. How good a job would one do if they got paid 2 bucks an hour?
Rousseau formula I believe is correct, no one should be paid more than twenty times what the least is paid in there field. Dan Price certainly works on that principle:
"The chief executive officer of a Seattle fintech company saw productivity and revenue triple after he raised the minimum wage to US$70,000. Gravity Payments CEO Dan Price made waves a few years ago after announcing that he would take a 90% pay cut so employees can receive a minimum salary of US$70,000 "
Dan Price , super hero. How many super yachts can you use after all? Jay Leno and his 50 cars - whats the point?
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I think female agency CEO's have the best job. The ladies do all the work and he or she collects 40% or more.
USC cheerleaders - YouTube
USC cheerleaders - YouTube
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Thats awesome for just a CEO. Sounds like he has more to offer.
In business intelligence determines your place on the ladder.
Sam Walton deserved his billions. He created an enterprise. The CEO of RBC is merely a steward. The 200 year old business will survive without him and a dozen equally qualified people could do the job. The average RBC bank teller makes less in a year then the RBC CEO earns in a single day. Not to mention the stock grants, the pensions etc.
It's obscene!!! That bank teller probably has a weekend retail job on the side to make ends meet.
I'd tax options as ordinary income if I was Minister of Finance, automatic double taxes on stock option grants. If I was a corporate board I'd cap C suite compensation at 100x average earnings. I'd also pay every low pay grade an immediate $5,000 raise. That CEO would survive on $6 million instead of $12 million. They would not quit in protest.
It's obscene!!! That bank teller probably has a weekend retail job on the side to make ends meet.
I'd tax options as ordinary income if I was Minister of Finance, automatic double taxes on stock option grants. If I was a corporate board I'd cap C suite compensation at 100x average earnings. I'd also pay every low pay grade an immediate $5,000 raise. That CEO would survive on $6 million instead of $12 million. They would not quit in protest.
Like the CEO’s in 2008 that melted down the banking system, and auto sectors… accepted massive gov’t bailouts, and awarded themselves massive massive bonuses???
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I think if everyone followed Dan Price who's being studied at Harvard you will soon find out that his employees are well off and taken care of.@Grace Sparks how far do you think the company would go?
You should follow this guy on twitter I admire him so much.
look at this garbage.
I Found Work on an Amazon Website. I Made 97 Cents an Hour.
I Found Work on an Amazon Website. I Made 97 Cents an Hour. (Published 2019)
Our reporter takes you inside the weird, wild, low-wage world of Mechanical Turk.
www.nytimes.com
Amazon is spending big to open grocery stores and convenience stores with no cashiers and is leading the charge to push the technology into stores everywhere, which would make cashiers extinct. Cashier is the No. 2 most common job in America
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