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Originally Posted by cabmando
That doesn't appear to be your point because if the stock market doesn't care about CEO pay, why would it react if it was a problem as you imply it would? The big picture to the stock market is profits.
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What if the CEO made $1B? Or $10B? Then the market would notice. At $50M, no one cares. Why? Because it's not material yet.
Quote:
Originally Posted by cabmando
There is an issue when CEO's are making 100x the average worker. This limits the upward mobility of the worker when CEO pay is based on profitability and a company is more profitable when it keeps wages low.
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The CEO's remuneration does not alter his primary job, be it fixed or variable linked to profits. The CEO has to maximize profit and share price. That is capitalism, and it means minimizing wages. Warren Buffet does not have a high salary. He still drives his costs down.