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You don’t see articles like this about moms with two jobs who still manage to take care of their kids (lemmy.world)
submitted 1 year ago by to c/mildlyinfuriating@lemmy.world
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[+] 57 points 1 year ago (9 children)
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  • [–] 3 points 1 year ago (4 children)

    This must be the 10th time I comment this on Lemmy and you might already know this, but:

    The reason a CEO gets paid what he gets paid is not because of the value he adds to the company (as you pointed out, anyone could do the job), but because when the company fucks up (whether due to his decisions, or those of the board, or just anything, really), he takes the fall so the company can keep on doing whatever shady shit they're doing and the board can act like they had no idea what was going on.

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  • [–] 8 points 1 year ago (3 children)

    The reason a CEO gets paid what they get paid is that they also sit on the boards of other companies and vote for the compensation packages of their CEOs, who also sit on the board of the CEO's company. It's literally a circlejerk.

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  • [–] 3 points 1 year ago (2 children)

    That helps, but largely the boards consist of major shareholders, or people that the shareholders have elected to be there.

    The board, representing the shareholders, needs to make sure the company maximizes shareholder value above all else. They steer the company in very broad strokes. But if the company does something illegal or highly unpopular, the board members want themselves, the shareholders and the company in general to be as insulated as possible. So the CEO is a sacrificial lamb who either resigns or is fired, and takes the golden parachute. The idea is that the CEO was at fault and everything's gonna be better now (no it's not lol)

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  • [–] 2 points 1 year ago (1 child)

    And what kind of job do you think those shareholders do?

    They are CEOs of other companies.

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  • [–] 2 points 1 year ago

    Being a CEO and being a shareholder have nothing to do with each other.

    The truly rich, AKA the major shareholders, aren't going to bother with a job, unless running their own company (probably the one they're the major shareholder at).

    Then the big institutional shareholders (Blackrock and the like) invest other people's money - people like you and me.

    Only a minority of shareholders for any given company, are CEOs at other companies.

    It's still a club for the ultra rich and we ain't in it. I'm just saying that your average CEO is set up to be a scapegoat for even richer and shadier people (while still very much not being one of us working class citizens)

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  • [–] 0 points 1 year ago

    Hour to hour and day to day that's probably true. But, nVidia is actually an example of a company where their leadership made some smart decisions decades ago by understanding their market extremely well and correctly predicting what was going to be happening in the industry 5-10 years down the line. For example, he went all in on CUDA almost a decade before the AI went mainstream, and because of that decision, nVidia is the biggest company in the world today.

    I would bet that if a major decision came up and you had to decide whether or not to go all in on X, you couldn't actually do his job.

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