Ray From Cleveland
Diamond Member
- Aug 16, 2015
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I've already schooled you on this subject many times ray, do you never learn? CEO pay and performance are not linked:So then how have we gotten into this spot where our middle class has disappeared and the rich have gotten richer? CEO pay has gone up like a rocket ship while worker pay has stagnated?Corporations pay people the going rate, just as they always have. They never did anything to "take advantage" of welfare programs.Your concerns are warranted. Like I said in a previous post, the problem may have started with too much welfare and corporations then took advantage of it.I am more concerned about the government spending and trying to be the morality agent then I’m of private business. I have never trusted government and their control and their motives. What if government decide that smaller companies need to follow this same policy? Once government gets a foot in the door all bets are off as the are just as greedy as the private sector. Money equals power for them.
CEO's are rare--at least good ones. They get the pay they do for the same reason an actress gets 10 mil for one film, or a baseball pitcher gets 8 mil for three years.
You and I own widget factories and we are competitors. We both need a CEO, but the best one available at the time wants 3 mil a year. You refuse to pay him that kind of money, but I don't. I hire him and we start taking your customers one by one. Eventually you are either out of business or close to it.
That's why I pay the CEO that kind of money. I can get minimum wage floor sweepers, machine operators for 12 bucks an hour, assemblers for 10 bucks an hour anywhere.
CEO Pay and Performance Often Don’t Match Up
CEO pay has increased dramatically because company boards are loaded with CEOs and they vote each other increases. It's a rigged game.
They get paid on past performance--not future performance. It's like when a famous rock or country band gets a record contract. Their last three recordings were hits and made a lot of money. If the fourth one is a dive, they still get paid the contract amount.