re: CEOs make too much money

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The 1st thing to do is say good for him/her because they made it. 2nd to do is quit worrying about other people and work on yourself. If you want more money like a CEO, figure out how to do it and make it happen. Worrying about others does nothing for your outcome.

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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.

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Companies can afford it, or they can't. While I think it's out of whack, I also understand the math that those complaining about it don't seem to get. Let's get into it...

The average annual salary of a Fortune 500 CEO is ~$18.9M per year.

The average number of employees a Fortune 500 company has is 62,000.

Let's say we take all but $1M from the CEO's salary, spreading that $17.9M out among 62,000 employees comes out to ~$288.71 per year for each of them.

Generally, 1%-2% of that staff is management. We'll err on the side of caution and go with 2%, meaning we subtract ~1,240 from that 62,000, leaving us with 60,760 and that brings us to a whopping $294.60 extra per year per employee.

But maybe all managers are making too much, so let's put them into the equation as well. Averages are that of that 60,760 left, another 1%-2% are non-executive management, leaving us with around another 1,215 employees removed from the equation, bringing us to 59,545 employees now getting an extra $300.61 per year.

Assuming someone gets paid every two weeks, there are 26 pay period each year, breaking that down to an extra $11.56 per paycheck. That's barely a Happy Meal.

Cutting back on the salaries of other executives could boost that a little, but the math simply isn't there to make the downstream impact many think it would.

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So by that logic the top stars like Lebron and Curry should be paid even more than they are because that’s who the fans pay to see and watch.

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It's not really debatable that someone like LeBron is WAY underpaid and has been for nearly all of his career. The economic impact LeBron has on the teams he plays for is MUCH MUCH greater than pretty much all of the other players who make similar money.

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The problem is when the companies do really well the employees rarely see financial gains only the stakeholders do.

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You mean those financially at risk?

It’s a matter of morality. Today’s CEOs are scumbags wanting to be billionaires as opposed to being mere multi millionaires! It’s a disgusting personal trait. Board members are scumbags too. The USA has allowed the destruction of teaching morals in schools. It’ll get worse. Keep pandering to the lowest denomination as you’ll see what you’ll get. Society as a whole is of decreasing intellect and values. The future is dim.

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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?

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Simple. With advances in mechanization and automation manual labor has gotten less valuable over time. The ability to locate, secure and close on CAPEX investment has become far, far more value over time.

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The market ain’t free anymore. Government involvement, activist hedge funds, and buddy buddy BoDs have made a nice little honey pot for themselves.

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What do you think happens when we hand MORE power to those same people to
police themselves?

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Everyone’s getting rich except the middle class that executes the plan that the consulting firm hired by the CEO comes up with.

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Horsehocky. Take CEO salaries and divvy them up between the workers
and it would amount to… very little. Take GM, their CEO makes about $25 million, and they have 157,000 employees. Distributed, his salary equals $156/employee per year. Or about $0.07/hr.

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The USA has allowed the destruction of teaching morals in schools. It’ll get worse. Keep pandering to the lowest denomination as you’ll see what you’ll get. Society as a whole is of decreasing intellect and values. The future is dim.

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You’re close.

The USA has actually forbidden teaching morality and endorses debauchery instead. And the future is unknown and depends on the time frame. There will definitely be some pain in the not too distant future but I think yet again the pendulum will keep swinging.

As far as pandering to the lowest common denominator I think you nailed it. Only leads to the bottom.

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Perhaps, but not necessarily.

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Thst doesn’t really tell the story. Wages only reflect part of the “value”—the downstream value. Those worker are worth higher wages because they are more productive via tech, automation, etc. that CAPEX provides.

Think about a construction company. In the early 80s we built a house. The carpenters used hammers. and the framing crew was like 10 guys. When was the last time you saw a framer not using a nail gun? Today 4 dudes can frame a house in a couple of days. Much more valuable.

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It's not really debatable that someone like LeBron is WAY underpaid and has been for nearly all of his career. The economic impact LeBron has on the teams he plays for is MUCH MUCH greater than pretty much all of the other players who make similar money.

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Sure, but LeBron couldn’t play if not for the people who run the stadiums, clean the courts, maintain the equipment, etc.

Why are they paid less?

Then you could get into the film crews.

If the cameraman, who is making magnitudes less than LeBron, wasn’t there to film the game, you wouldn’t have broadcasting and subsequent ad revenue.

It isn’t fair that these athletes are paid more than them.




Yes, that is sarcasm, but it goes back to the stupid basis of the thread.

People are paid based on what others deem that they are worth and their replaceability.