C.E.O.'s Salaries

Author
Discussion

A500leroy

Original Poster:

5,085 posts

117 months

Thursday 26th May 2022
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Genuine question educated me.

Why do they get paid 100's of 1000s in salary compaired to normal workers/management.

Are they on 24/7 call out? Not allowed holidays or sickness? Are the jobs so difficult that an ordinary person couldnt do them? Not allowed a family life as work has to be number 1?

Whay is they get paid a lot of money and get large bonuses (even in some cases they fail?)

768

13,601 posts

95 months

Thursday 26th May 2022
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Why do you think?

wiggy001

6,542 posts

270 months

Thursday 26th May 2022
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Not sure if serious.

Muzzer79

9,806 posts

186 months

Thursday 26th May 2022
quotequote all
1. Why do you care?

2. It's a silly question.

deckster

9,630 posts

254 months

Thursday 26th May 2022
quotequote all
If you look carefully, you've asked two questions there.

(1) What does a CEO do?
(2) Why does that merit a high salary

If you understand (1), then (2) becomes a bit clearer. Now there is a very valid debate as to whether any given CEO is worth the money they are paid, or even if CEOs as a whole (and indeed any C-suite role) are worth the premium. But you need to, at least, start from a position where you understand what the job is.

Which, obviously, is nothing to do with holidays or 24x7 callout.

crankedup5

9,249 posts

34 months

Thursday 26th May 2022
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Some of the pay packages have been in the tens of millions of pounds!

gotoPzero

17,122 posts

188 months

Thursday 26th May 2022
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Its a bit like saying why do premiership footballers get £500k a week (or whatever it is) or F1 drivers £80M a year.
Anyone can kick a ball or drive a car fast....

They are basically top of their game and the best of the best and have a very specific skill set that 99.999% of the rest of the population don't have.


dmahon

2,717 posts

63 months

Thursday 26th May 2022
quotequote all
A CEO on the big money is possibly steering the ship of a multi £billion organisation.

Depending on their performance they could add or remove hundreds of millions from the bottom line.

There are also vanishingly few people with the experience and track record of running a large business. This means there are multiple people looking for the same talent and outbidding each other.

Though they aren’t on call, you are basically giving your life and all of your waking thoughts to the business as a C level exec at that scale.

Not saying it’s justified, but I can see why the number gets so big.

longblackcoat

5,047 posts

182 months

Thursday 26th May 2022
quotequote all
crankedup5 said:
Some of the pay packages have been in the tens of millions of pounds!
Yes, they have.

If you're Tim Cook of Apple, you've added billions to the profits of the company and many multiples of that to the valuation of the organisation as a whole.

He's paid something around £3m in salary, with the rest being in bonus and chare options. His 2022 overall compensation will be around £75m - but I'd say he's worth every penny.

It's his leadership that's brought it about - clearly there are many factors, but he's absolutely brilliant at running Apple.

valiant

10,068 posts

159 months

Thursday 26th May 2022
quotequote all
Yeah, but what about the nurses?

Surely every wage nowadays is compared to the starting salary of a nurse or is that just the RMT thread?

768

13,601 posts

95 months

Thursday 26th May 2022
quotequote all
gotoPzero said:
Its a bit like saying why do premiership footballers get 500k a week (or whatever it is) or F1 drivers 80M a year.
Anyone can kick a ball or drive a car fast....

They are basically top of their game and the best of the best and have a very specific skill set that 99.999% of the rest of the population don't have.
And then being surprised they still get paid when they lose.

faa77

1,728 posts

70 months

Thursday 26th May 2022
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Never understood why these guys take such high salaries. 45% tax straight away.

brickwall

5,192 posts

209 months

Thursday 26th May 2022
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faa77 said:
Never understood why these guys take such high salaries. 45% tax straight away.
Err…not sure if serious

Zoon

6,654 posts

120 months

Thursday 26th May 2022
quotequote all
faa77 said:
Never understood why these guys take such high salaries. 45% tax straight away.
How to make a small fortune, start with a big one.

Muzzer79

9,806 posts

186 months

Thursday 26th May 2022
quotequote all
faa77 said:
Never understood why these guys take such high salaries. 45% tax straight away.
Again, not sure if serious.

Unless you're suggesting they should take share options or similar benefits instead of salary? confused

Jim the Sunderer

3,238 posts

181 months

Thursday 26th May 2022
quotequote all
Outsource IT to India
Get huge bonus
Jump ship and repeat.


A500leroy

Original Poster:

5,085 posts

117 months

Thursday 26th May 2022
quotequote all
Yes genuine question. With me being at the bottom of the ladder, just wondered how much harder the ceo is grafting to be worth the massive salary as i have no idea what he does!

faa77

1,728 posts

70 months

Thursday 26th May 2022
quotequote all
Muzzer79 said:
faa77 said:
Never understood why these guys take such high salaries. 45% tax straight away.
Again, not sure if serious.

Unless you're suggesting they should take share options or similar benefits instead of salary? confused
Exactly

In most high paid jobs salary is just to provide comfortable living. You receive the remaining "real money" via more tax efficient means.

pquinn

7,167 posts

45 months

Thursday 26th May 2022
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A500leroy said:
Are they on 24/7 call out? Not allowed holidays or sickness?
From what I've seen of it (at least for a couple of Fortune 100 scale ones) is it definitely isn't a Monday to Friday 9 till 5 job. Always something going on.

You'll see some grossly disproportionate remuneration at some places but it's not a trivial job.

dundarach

4,963 posts

227 months

Thursday 26th May 2022
quotequote all
If the decisions you make cost a lot, you're paid a lot.

Equally if bullst keeps the wolves from the door, bullstting isn't quite as easy as it seems.