Lavish CEO Pay Has Virtually Nothing To Do With How Well A Company Performs

[iceberg_is_on_fire]

Not surprised.

 

[DEAD7]

it's one fact among others that people can use to guage to see if the current economic order is serving the interests of the people.

and what correlation exist between CEO pay and "current economic order"?

 

[NZA]

and what correlation exist between CEO pay and "current economic order"?

it seems that merit has begun to no longer pay. policy is dictating compensation, the capital owners and c-level execs are the ones setting that policy, workers are lagging on that front

 

[DEAD7]

it seems that merit has begun to no longer pay. policy is dictating compensation, the capital owners and c-level execs are the ones setting that policy, workers are lagging on that front

I don't think pay is merely a reflection of merit, but also an incentive to perform well, and a means of attracting the best and brightest.

 

[NZA]

I don't think pay is merely a reflection of merit, but also an incentive to perform well, and a means of attracting the best and brightest.

and yet the facts complicate that...

 

[ExodusNirvana]

 

[DANKTHRONE]

I don't think pay is merely a reflection of merit, but also an incentive to perform well, and a means of attracting the best and brightest.

How is it an incentive to have guaranteed money?

 

[DEAD7]

How is it an incentive to have guaranteed money?

Not sure what you mean.

... but competition forces wages up.

Is it perfect? no, but its better(atm) than every viable alternative .

 

[Futuristic Eskimo]

those are profits for the owners.


I dont really understand the complaint here. Some multi billion dollar corporation paying their CEO millions of dollars is not going to have an effect on their bottom line or what they pay their employees.

The vast majority of most CEO compensation isnt even in cash. The numbers are very misleading, as people seem to think the headline of CEO of X Company is getting cut a $30 million check every year.

Still, ideally, these people would either be paying more taxes or getting paid less. European CEOs don't make anywhere near what their American colleagues do and things function reasonably well over there.

 

[Brown_Pride]

in some cases tying a CEO's pay to profits isn't fair either. Can you imagine getting handed a failing company and the "incentive" is to turn it around? Hell sometimes a CEO is brought in to help sell off a company. Just saying this isn't as black and white as most people think.

Merit died thousands of years ago as a means of justifying wages earned, if that were ever really the case the people with the crappiest jobs would be making bank.