Why do American CEOs make twice as much as German CEOs?

[Brain357]

There has been lots of discussions about worker pay and bringing back good paying jobs. I think this is an article everyone should read:
Why do American CEOs make twice as much as German CEOs?

While our workers wages have been stagnant, our ceo pay has really skyrocketed. This gives some real insight to how Germans make more than US workers:

The researchers also broke out the average CEO-to-worker-pay ratio for 16 countries, using AFL-CIO data. For the U.S., the ratio is 354-to-1. Germany comes in third highest with a ratio of 147-to-1. It’s still a large figure, but should the ratio in the U.S. be more than double that of economic stalwart Germany?

In Germany, labor has a seat at the table

In the U.S., average annual worker pay is $34,645. A German worker receives $40,223 a year on average.

Most important of all, representation on German corporate boards of directors is split between labor and shareholders through an executive board and a non-executive board. This has given workers the ability to raise employee pay along with overseeing CEO salaries.

Whether it’s through minimum wage hikes or acceptance of labor unions, for the U.S. CEO-to-worker pay ratio to decrease, workers will need a seat at the table. This would not only help improve worker pay, it could also provide a much-needed counterpoint during CEO salary discussions.

Most U.S. companies leave workers out of boardroom conversations, so it’s not surprising that executives primarily focus on CEO pay incentives and fail to recognize the necessity to do the same for the rank-and-file.

Without those kinds of conversations during board meetings, American CEO pay will likely continue to skyrocket.

 

[fncceo]

Because people are willing to pay them twice as much.

 

[Brain357]

Because people are willing to pay them twice as much.

By people you mean the board of directors which is filled with other ceos who also want increases.

 

[007]

Because our economy eclipses that of Germany.

 

[Brain357]

Because our economy eclipses that of Germany.

Then why do German workers make so much more than ours?

 

[Wyatt earp]

Because are Unions suck , are lazy and greedy as fuck and don't know how to negotiate like the German Unions do.


.

 

[007]

Because our economy eclipses that of Germany.

Then why do German workers make so much more than ours?

Uuuumm... did you happen to catch the OP? It says German CEO's don't make as much as their American counterparts.

Reading is fundamental.

 

[Asclepias]

Because our economy eclipses that of Germany.

Then why do German workers make so much more than ours?

Uuuumm... did you happen to catch the OP? It says German CEO's don't make as much as their American counterparts.

Reading is fundamental.

You may want reword that post so you dont look stupid. Oops too late!

 

[Brain357]

Because our economy eclipses that of Germany.

Then why do German workers make so much more than ours?

Uuuumm... did you happen to catch the OP? It says German CEO's don't make as much as their American counterparts.

Reading is fundamental.

So you are saying because German CEO's make less, German workers make more than US workers? So our CEO pay is the problem?

 

[Brain357]

Because are Unions suck , are lazy and greedy as fuck and don't know how to negotiate like the German Unions do.


.

They do have much more union representation. Is the problem our decline in unions?

And yes theirs could be better than ours.

 

[The VOR]

Because our economy eclipses that of Germany.

Then why do German workers make so much more than ours?

Uuuumm... did you happen to catch the OP? It says German CEO's don't make as much as their American counterparts.

Reading is fundamental.

Yes, reading is fundamental, and if you would have read the article, you would have read where it stated that German workers make more than American workers.

 

[007]

Because our economy eclipses that of Germany.

Then why do German workers make so much more than ours?

Uuuumm... did you happen to catch the OP? It says German CEO's don't make as much as their American counterparts.

Reading is fundamental.

You may want reword that post so you dont look stupid. Oops too late!

Really?

OP title: Why do American CEOs make twice as much as German CEOs?

Better check yourself, man.

 

[007]

Because our economy eclipses that of Germany.

Then why do German workers make so much more than ours?

Uuuumm... did you happen to catch the OP? It says German CEO's don't make as much as their American counterparts.

Reading is fundamental.

Yes, reading is fundamental, and if you would have read the article, you would have read where it stated that German workers make more than American workers.

OP title says CEO's. You miss that or what?

 

[fncceo]

Because people are willing to pay them twice as much.

By people you mean the board of directors which is filled with other ceos who also want increases.

Boards are not filled with CEOs. CEOs are hired by boards to deliver the goals of the board. The CEO's compensation package is tied to how well, or how poorly, he or she delivers on those goals. The compensation of the board is tied to the value of the company. They are often majority stockholders, many times CEOs will hold no company stock other than what is in their packages.

Boards decide who to hire as a CEO based on two things. One, how well he or she has delivered on goals for other companies in the past. Two, how investment analysts and potential shareholders will perceive that person and what his or her hiring will say about the company's goals. Hiring a high-profile CEO can often jump-start a company's stock price and their perceived value in the marketplace.

Hiring of CEOs is directly analogous to the hiring of athletes in a professional sports franchise. Sports team ownership wants to make money. The owners of a sports franchise aren't a bunch of athletes who pay star players big salaries so they can ask for big salaries themselves. They are investors who make money based on the popularity of their team. They won't pay a penny more for the talent they hire than they think that player could potentially make for them. A popular player with a great track record who will attract fans will make huge salaries. A player with an average track record and no fan appeal will make the least. Sometimes, those star players don't deliver on their expectations and they are quickly gone. The same for CEOs.

 

[Asclepias]

Because our economy eclipses that of Germany.

Then why do German workers make so much more than ours?

Uuuumm... did you happen to catch the OP? It says German CEO's don't make as much as their American counterparts.

Reading is fundamental.

You may want reword that post so you dont look stupid. Oops too late!

Really?

OP title: Why do American CEOs make twice as much as German CEOs?

Better check yourself man.

Yeah speedy. that means "German CEO's don't make as much as their American counterparts."

 

[shockedcanadian]

The CEO to average worker disparity is hurting companies and the economy.

The Warren Buffett belief is CEO's should make $100k a year and be remunerated on the stock price, increased profits and value of the business as a whole etc. He is so tight on this that for a man who understand business and the market possibly better than anyone, he is rarely invited to sit on Boards anymore.

I would like to see more shareholders launch lawsuits against massive, unrewarded pay increases and Board Members and Executives see prison time for abuse of fiduciary duty where applicable.

I don't care if a CEO makes $100M a year, but he better bloody well earn it. Far too many get a skewed salary based on a blank check. There needs to be justification!

 

[Asclepias]

Because our economy eclipses that of Germany.

Then why do German workers make so much more than ours?

Uuuumm... did you happen to catch the OP? It says German CEO's don't make as much as their American counterparts.

Reading is fundamental.

Yes, reading is fundamental, and if you would have read the article, you would have read where it stated that German workers make more than American workers.

OP title says CEO's. You miss that or what?

You may want to just admit you fucked up dude.

 

[Mac1958]

They make twice as much because American Boards of Directors are too afraid to take a chance and take on new blood.

 

[Wyatt earp]

Because are Unions suck , are lazy and greedy as fuck and don't know how to negotiate like the German Unions do.


.

They do have much more union representation. Is the problem our decline in unions?

And yes theirs could be better than ours.

Our unions made themselves irrelevant, both countries unions started around the same time. America unions cared more about the people then the product they were making and selling.

 

[The VOR]

Because our economy eclipses that of Germany.

Then why do German workers make so much more than ours?

Uuuumm... did you happen to catch the OP? It says German CEO's don't make as much as their American counterparts.

Reading is fundamental.

Yes, reading is fundamental, and if you would have read the article, you would have read where it stated that German workers make more than American workers.

OP title says CEO's. You miss that or what?

Obviously, you are just a headline/title reader and don't bother reading the actual articles. If you would have done that, then you would have seen where it stated that German workers make more than their American counterparts.