this post was submitted on 02 May 2024
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This always comes down to the fact that labor is competitive. Why pay someone $200k/yeae when someone will do the job for $80k/year? Competition drives the prices of labor down. Maybe there needs to be better regulation for labor competition like corporations enjoy.
Assuming the same job's quality, a possible answer is "because to live where your company is you need to be paid $200K/year"
That presumes an interest in your survival...
How do people live in these areas without making $200k/year?
They cannot, that is the reason you need to pay that much to work for you.
So nobody lives in these areas that makes under $200k/year?
Even the janitors?
I don't know, but if they live there, I think they have it that good.
It is more (way more) probable that they just commute far enough away from there to have lower housing cost
What I don't understand is why does competition matter for workers but somehow not for CEOs? I kind of understand and agree in the free market to an extent - if you're fine with hiring a dev for $100 instead of another dev for $1000, and you're okay with the difference in quality / time / etc. then go for it. But where is all this competition happening for CEOs?
Surely someone must be as qualified as Bitchai and willing to do the same job for a measly 100 million a year instead of his 200 million.
Ceo pay is advertised and used against each other to get top dollar. Lowers like us have out pay hidden so companies can low ball without us knowing. That's what needs to change. It should be law to be advertised pay rate so the lowballers get exposed and no one applies, forcing pay to go up.
Workers do the actual work. CEOs just make decisions that anyone can make and they have a board of people usually backing them up.
What I'm perplexed at is - what if I went to the board and said "I have a guaranteed way to increase profit by 150 million - just pay me 50 million a year and fire Bitchai". I would legit do my best to make great decisions for 50 million.
Why doesn't the board care about cutting costs by cutting CEO pay? I can't imagine any difference that would really justify Bitchai 's pay difference.
I also cannot imagine they are all part of some secret conspiracy where they all know each other and like each other so much that they just want to pay him that money because they're buddies.
Wouldn't $150 million be more than enough justification to hire someone else?
People who sit on boards are also those very same CEOs at other companies...
This assumes that they aren't hiring the CEO to be the fall guy. Someone who's job is largely (as things stand now) meant to take on the risk that if the company does not increase profits or make shareholders happy, they will blame and fire that person and hire someone else.
Since a lot of CEOs kind of bet on this they take ridiculous chances (like getting paid in stock options that only mature at a certain point with the knowledge that they need to make stock options valuable so they can cash out).
Valuable doesn't have to be long term. It just has to last long enough for the person in question to cash out.
LMK when your company hits a billion dollars in revenue and we'll see how easy the job is.
Lol.