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Message

re: CEOs make too much money

Posted on 8/6/25 at 8:00 am to
Posted by oklahogjr
Gold Membership
Member since Jan 2010
40237 posts
Posted on 8/6/25 at 8:00 am to
quote:

There are bad CEOs who are paid handsomely.

The sears CEO comes to mind. Sold everything of value to himself and left sears a shell in bankruptcy to be cleaned out.


quote:

The amount the CEO of a major corporation is making largely has zero impact on the salaries of the 1000s of employees.

The argument should be that those at the bottom aren’t being paid enough, yet everyone spends time squabbling over how we should bring the pay of the CEO down.

Scruffy get it
Posted by stout
Porte du Lafitte
Member since Sep 2006
179701 posts
Posted on 8/6/25 at 8:01 am to
quote:

The problem is there are a lot of mediocre CEO’s making ridiculous money.



Are you just upset about the CEOs of public companies? What about small businesses or larger private businesses?

Should the CEO of a small business, who built the business, not reap the fruit of his labor? I make a lot more than my employees, but I have all of the risk and worked pretty hard to build it. Now I have a lot of free time and am building other things, but I still manage it overall, and it wouldn't exist without me.

Cargill, Inc. is the largest privately held business in the USA so we have no idea what their CEO makes but we do know they generate over $160 billion in revenue every year. Should he not be compensated for helping maintain and grow the business without taking it public?
Posted by Scruffy
Kansas City
Member since Jul 2011
76603 posts
Posted on 8/6/25 at 8:02 am to
quote:

They are underperformers that are overcompensated, especially versus their staff.
Based on what?

You keep saying this, but these are the largest corporations on earth.
quote:

The solution should be highly correlated with long term stock performance, with a salary that is low millions max. Too many of the stock incentive schemes now are short term and are essentially grants that carry no risk whatsoever.
And that is decided by the stockholders and the company itself.

Also, as people have pointed out, how exactly would reducing their pay impact the other employees?

Despite this statement being old hat, you aren’t arguing for the betterment of the other employees.

Reducing CEO pay at these major corporations has no impact on the pay of the 1000s of employees.

You are merely arguing against someone making more than you because you don’t appear to like that.

Stop fighting to bring down their pay and instead fight to uplift the pay of the workers.
Posted by the808bass
The Lou
Member since Oct 2012
125581 posts
Posted on 8/6/25 at 8:05 am to
What’s more, the cash compensation is a small portion of overall compensation. The CEO of Walmart (US) in 2025 got $1.3M in salary. $2.8M in bonus. And the rest is almost all stock.
This post was edited on 8/6/25 at 8:06 am
Posted by NC_Tigah
Make Orwell Fiction Again
Member since Sep 2003
135711 posts
Posted on 8/6/25 at 8:05 am to
quote:

That’s not the case for the CEO of a company.
Of course it is.
Posted by Jake88
Member since Apr 2005
78178 posts
Posted on 8/6/25 at 8:06 am to
quote:

Stop fighting to bring down their pay and instead fight to uplift the pay of the workers
You're arguing with people who think there are a finite number of dollars and the "fat cats" are hoarding them away from the "little man." Union brain washing is prevalent even among non-union people.
Posted by stout
Porte du Lafitte
Member since Sep 2006
179701 posts
Posted on 8/6/25 at 8:07 am to
quote:

The sears CEO comes to mind. Sold everything of value to himself and left sears a shell in bankruptcy to be cleaned out.




I see this example a lot with zero perspective. He became CEO in 2013 when Sears was already in big trouble. Their last profitable year was 2010, and their sales were steadily declining. He tried to right the ship for 5 years before stepping down, and his hedge fund put in a bid to acquire some of the assets.
Posted by Taxing Authority
Houston
Member since Feb 2010
62611 posts
Posted on 8/6/25 at 8:08 am to
quote:

They’re the reason for the large tv contracts that allow them to be paid that much. That’s not the case for the CEO of a company.
Huh? Of course it is If a company like GM fails, is it because of CEO leadership, or is it the workers’ fault?

quote:

Maybe a better comparison for a CEO would be the GM of a pro sports team, but they aren’t being paid 30000x more than the players.
Wait until you find out what arena workers and juicier room janitors make.
This post was edited on 8/6/25 at 8:09 am
Posted by Scruffy
Kansas City
Member since Jul 2011
76603 posts
Posted on 8/6/25 at 8:11 am to
quote:

Wait until you find out what arena workers and juicier room janitors make.
Could LeBron and the other basketball players even play if the janitors didn’t clean the court?

Could the Yankees play if the groundskeeper and staff didn’t manage the field?

How much does the staff that moves the NFL players gear for away games make every year?

Why should the players make all the money when the staff is needed so that they can play?

That is the asinine argument being made in this thread.
This post was edited on 8/6/25 at 8:13 am
Posted by Spaceman Spiff
Savannah
Member since Sep 2012
20010 posts
Posted on 8/6/25 at 8:14 am to
We found the freeloader
Posted by lsu777
Lake Charles
Member since Jan 2004
36790 posts
Posted on 8/6/25 at 8:17 am to
its fricking simple supply and demand. Do you think the company wants to pay the CEO that much?

do you think the NFL wants to pay players as much as they do? no, but its simple supply and demand.
Posted by Larry_Hotdogs
Texas
Member since Jun 2019
1912 posts
Posted on 8/6/25 at 8:19 am to
quote:

I don’t doubt the CEO job is more taxing but AI should be able to analyze a companies performance and make help make good financial decisions.

Start and build your own Fortune 500 company and run it that way.

Best of luck or thoughts and prayers, whichever is more appropriate.
Posted by PetroAg
Member since Jun 2013
1874 posts
Posted on 8/6/25 at 8:23 am to
What has changed in “supply and demand” to justify why CEO’s make 300:1 the average employee, when it was 30:1 in the 80’s? At what point is it unacceptable regardless of the “free market” says? 3000:1? 30000:1?

The market ain’t free anymore. Government involvement, activist hedge funds, and buddy buddy BoDs have made a nice little honey pot for themselves. Everyone’s getting rich except the middle class that executes the plan that the consulting firm hired by the CEO comes up with.

But if you don’t agree, you’re a neck beard, communist who’s jealous and doesn’t understand the market.
Posted by PetroAg
Member since Jun 2013
1874 posts
Posted on 8/6/25 at 8:27 am to
I’m speaking in experience with oil companies. Most of the development and cost reductions start at the technical, individual level. The CEO will set goals on production, capital and free cash flow targets but it’s up to the technical teams to execute. There are almost no specific ideas that are starting at the top and working down. Technical teams innovate and advise upper management on what realistic targets should be.
Posted by oklahogjr
Gold Membership
Member since Jan 2010
40237 posts
Posted on 8/6/25 at 8:28 am to
quote:

He became CEO in 2013 when Sears was already in big trouble. Their last profitable year was 2010, and their sales were steadily declining. He tried to right the ship for 5 years before stepping down, and his hedge fund put in a bid to acquire some of the assets.


Oh they definitely were in trouble. And he definitely sold and bought most everything of value from sears leaving them a shell with no way to make money as they collapsed. He made himself far wealthier on the decline of the company....
Posted by Scruffy
Kansas City
Member since Jul 2011
76603 posts
Posted on 8/6/25 at 8:31 am to
quote:

What has changed in “supply and demand” to justify why CEO’s make 300:1 the average employee, when it was 30:1 in the 80’s? At what point is it unacceptable regardless of the “free market” says? 3000:1? 30000:1?


Again, it is irrelevant.

It has zero impact on the salaries of employees.

You could split the salaries of a CEO and it would add the cost of a hamburger to the employees’ yearly salary.

You are focused on the wrong thing.
quote:

But if you don’t agree, you’re a neck beard, communist who’s jealous and doesn’t understand the market.
No, I just think you are an idiot who is hyper focusing on an irrelevant aspect that has zero impact on anything else.

You are taking the simplistically moronic view by focusing on the lowest common denominator argument.
Posted by NC_Tigah
Make Orwell Fiction Again
Member since Sep 2003
135711 posts
Posted on 8/6/25 at 8:35 am to
quote:

What has changed in “supply and demand” to justify why CEO’s make 300:1 the average employee, when it was 30:1 in the 80’s? At what point is it unacceptable regardless of the “free market” says? 3000:1? 30000:1?

quote:

The CEO to employee ranking use to be 30:1 in the 1980s which I can understand but it is now approaching 300:1 in some companies. Seems like things are out of whack.
Once again ...


Superficially, it might seem more that way than is actually the case.

Corporations freely determine compensation in a competitive capitalistic economy. So one would assume there must be more to it. After all, companies overpaying for material and/or personnel don't tend to stick around.

Let's take a better look.

First off, for current companies with a market cap < $1-2 Billion, the CEO:Employee income ratio is 32:1. Going back to the 1970's (not the 1980s) when the CEO:Employee income ratio was 30:1, the S&P market cap was about $700 Billion (or ~$1.4 Billion per company). In those terms, CEO:Employee income ratios are fairly consistent.

But whereas the 1970's S&P was valued at $0.7T and traded in a range of 65-115 (we'll call it ~ 90 for purposes of discussion), it's current MC is ~$55T (or ~$110 Billion per company) and it trades at 6300 (about 69x its 1970s number). CEO:Employee income ratio for S&P companies runs at 285:1

S&P market cap is up 79-fold since the 70s. The S&P trades at 70x its 1970's counterpart. Meanwhile, the S&P CEO:Employee income ratio is up 9.5-fold.

Now, one can certainly argue inflationary impact in those differentials. However, the fact is, when a company grows from 1000 to 10000 or 100000 employees, those employees are doing the same basic job they were doing all along, but for the CEO, there are significantly expanded requirements.

Posted by Lsupimp
Ersatz Amerika-97.6% phony & fake
Member since Nov 2003
85433 posts
Posted on 8/6/25 at 8:37 am to
Reading this thread, and splitting the middle. The State has no business having any opinion on CEO compensation. Wealth creation is a gift to society and these are extremely rare people with rare skills. And yet crazy income disparities destabilize societies. It also gives the socialists ammunition to organize the violent mob to deny property rights for all of us. So my point is that’s it’s more than just an ideological debating point.
Posted by Tchefuncte Tiger
Bat'n Rudge
Member since Oct 2004
62750 posts
Posted on 8/6/25 at 8:40 am to
quote:

The CEO to employee ranking use to be 30:1 in the 1980s which I can understand but it is now approaching 300:1 in some companies. Seems like things are out of whack.


True, but it's not the government's responsibility to fix this. I think professional athletes are grossly overpaid, but don't believe the government should get involved to limit their salaries.
This post was edited on 8/6/25 at 8:43 am
Posted by Taxing Authority
Houston
Member since Feb 2010
62611 posts
Posted on 8/6/25 at 8:44 am to
quote:

I don’t doubt the CEO job is more taxing but AI should be able to analyze a companies performance and make help make good financial decisions.
Tell us you know nothing about being a CEO without telling us.

quote:

Seems like a good boys club to me
You can manufacture any opinion you like. It's easy because you know nothing about it. Classic Dunning Krueger.
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