C.E.O.'s Salaries
Discussion
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?)
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?)
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.
(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.
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.
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.
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.
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.
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.
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.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.
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?
In most high paid jobs salary is just to provide comfortable living. You receive the remaining "real money" via more tax efficient means.
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.
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