Can someone explain to me why we're outraged that CEOs make lots of money? I truly don't understand it. My presumption is that CEOs are adding enough value to be worth their pay, just like every other worker (should be).
SEC adopts rules mandating disclosure of CEO-worker pay ratios
11–20 of 86 posts
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#12Can someone explain to me why we're outraged that CEOs make lots of money? I truly don't understand it. My presumption is that CEOs are adding enough value to be worth their pay, just like every other worker (should be).
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#13I have thought once I establish a company, I might tie CEO salary to be limited to being a multiple of the least paid employee. Then what the good ratio is becomes an interesting question to me. Is 10x enough? Is 100x too much? Is a CEO's productivity worth 100x the lowest paid employee? If we go with the lowest paid employee is making 30k a year, and the CEO is making 3mil? Is that too much, not enough, just right?…
> Is a CEO's productivity worth 100x the lowest paid employee? No. Not if you want to live in a peaceful society, but we're talking religions again... You are correct, there is no right answer. Views vary based on how much 'socialist' or 'liberal' someone is.
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#14Can someone explain to me why we're outraged that CEOs make lots of money? I truly don't understand it. My presumption is that CEOs are adding enough value to be worth their pay, just like every other worker (should be).
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#15I'm not really sure what this is going to accomplish. CEO pay is already public. And this is going to end up on page 37 of a companies 68 page annual report. And then there is this.... > Under the Securities and Exchange Commission's final rules, companies will get some flexibility in how they find the median. For instance, they can exclude 5 percent of their overseas workers when arriving at the number and use stati…
* It is an unimplemented part of a law that was passed 5 years ago. Why the 5 year delay? * In the past 2 years, there were 280,000 public comments supporting the pay ratio rule. * Why would the page of the annual report on which this figure appears matter? As far as I can see from AAPL's report, the first page is fluff: http://investor.apple.com/secfiling.cfm?filingid=1193125-11-... * Did I mention it is a requirement of a law passed 5 years ago?
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#16Can someone explain to me why we're outraged that CEOs make lots of money? I truly don't understand it. My presumption is that CEOs are adding enough value to be worth their pay, just like every other worker (should be).
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#17Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#18Can someone explain to me why we're outraged that CEOs make lots of money? I truly don't understand it. My presumption is that CEOs are adding enough value to be worth their pay, just like every other worker (should be).
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#19Can someone explain to me why we're outraged that CEOs make lots of money? I truly don't understand it. My presumption is that CEOs are adding enough value to be worth their pay, just like every other worker (should be).
Who decides that and is it true or fair? If the CEO earns 25x the average employee salary would it be clear that they add 25x more value to the company than any other employee?
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#20Can someone explain to me why we're outraged that CEOs make lots of money? I truly don't understand it. My presumption is that CEOs are adding enough value to be worth their pay, just like every other worker (should be).
There's a lot of suspicion that your presumption isn't accurate. It's a fairly big area of research, though. One alternate hypothesis is a form of "executive capture", that companies nominally owned by shareholders are actually run by more of a clique of executives, who serve on each others' boards and pay each other large salaries. Some mild but inconclusive correlational evidence for that view is that when controll…