Let’s look at the value added by CEOs
There’s been much discussion about whether or not CEOs of large corporations are paid too much, since many of them get as much as 322 times the pay of their average employee. The question should be, what value do they add to deserve so much compensation, especially in an age when quality and customer service has become either very poor or non-existent in so many situations?
If instead of making 322 times the pay of the average employee, CEOs were paid only 22 times that average pay like they were years ago, they could each hire 300 more employees to provide better service or improve quality. While this would not solve our unemployment problem, it would help, and the improvements in service and quality would be greatly welcomed by consumers.
As an alternative, the money saved could be applied to using better raw materials or manufacturing processes to make better products, something that would also be greatly welcomed by consumers.
Kenneth Ciszewski
Overland
I know of no value added by a CEO.
Ah, sheesh, Mr. Ciszewski, that would make sense; and goodness knows, we can’t have any of that in our economy! Why would one look toward the future and work to better a company when one can greedily squeeze out what it can before taking a golden parachute and letting the leftover chips fall where they may?
So how do you feel about pro baseball players, pro basketball players, movie actors and TV stars?
Kenneth, there’s always a bigger fish; but, there’s always a smaller one too. I wonder how many of the other 6billion+ people on earth think your 10000x their income ought to be capped?
Ken,
Ever hear of the board of directors?????
Boards of Directors of most large companies are members of the club. In other words–you serve on my board, and I’ll serve on yours. The board members are often very well paid.
The question (really a statement) about the exhorbitant pay of some entertainers, ball players, etc. is a valid point. There is one difference–if we don’t buy tickets to the performancess or ball games, or buy the CDs and DVDs–or go to the movies or stage shows–these people would not be paid as much. So that’s under our control.
When a company is losing money, stock is going down, employees are being laid off, and our tax money is used to bail them out, yet the CEO’s get huge salaries, bonuses, and golden parachutes, well, i’d say something is dreadfully wrong somehwere.
i love how it’s so easy to say CEO’s shouldn’t be paid what they get, but if you put any normal person in a CEO’s position, how many would turn down that kind of money? The amount of responsiblity a CEO has is more than an average person could handle. I can’t imagine many CEO’s would still want their jobs if they didn’t get paid well when they could do an easier job for the same amount of money.
Plus, there are plenty of CEO’s that donate a lot of money to universities and charities, but we don’t hear about those, just the evil ones.
And as for pro ball players, most are probably underpaid. how much revenue would you guess albert pujols brings in for the cardinals? the cards are making big bucks even when paying athletes insane amounts of money.
Any lowly worker on the factory floor brings more value to the Company or Corporation than any CEO.
Last time I checked, we live in a free country that protects property rights. Ergo, unless you are a shareholder, it’s none of your damn business what anyone at that company earns. You people are dangerous to all our freedoms.