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Thread: Never can understand why people bitch about CEOs getting paid so much?

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  1. #1 Never can understand why people bitch about CEOs getting paid so much? 
    RX Semi-God
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    They are the boss. They most likely helped create the business. They deserve more pay.
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  2. #2  
    RX Junior seldomseen's Avatar
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    What about stock options?
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  3. #3  
    RX Local JustinCruise's Avatar
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    Of course they deserve more pay then everyone else since they are the boss

    But not the millions and millions more than everyone else.

    Most of them are pretty clueless, ever seen the show undercover boss?
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  4. #4  
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    Quote Originally Posted by JustinCruise View Post
    Of course they deserve more pay then everyone else since they are the boss

    But not the millions and millions more than everyone else.

    Most of them are pretty clueless, ever seen the show undercover boss?
    This is the part I don't get. Why not millions and millions? It's their company. They can get paid what they want.
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  5. #5  
    RX Junior seldomseen's Avatar
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    Problem isn't in the pay. It's the incentive. I'm sure there are much more intelligent posters than me that will take the time to explain.
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  6. #6  
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    Quote Originally Posted by Enfuego View Post
    This is the part I don't get. Why not millions and millions? It's their company. They can get paid what they want.
    In some cases they may be the owner but most of the time the ceo is not the owner of the company unless it is a small private firm
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  7. #7  
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    Quote Originally Posted by JustinCruise View Post
    In some cases they may be the owner but most of the time the ceo is not the owner of the company unless it is a small private firm
    I mean, owner, CEO, either way. Why is it anyone's business to tell the company what they should be earning?
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  8. #8  
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    Quote Originally Posted by seldomseen View Post
    Problem isn't in the pay. It's the incentive. I'm sure there are much more intelligent posters than me that will take the time to explain.
    The rise of activist investors is a very good trend for the most part. Much tougher for bad CEOs to continue to run a company with complacency or incompetency.
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  9. #9  
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    Quote Originally Posted by PatsFan1283 View Post
    The rise of activist investors is a very good trend for the most part. Much tougher for bad CEOs to continue to run a company with complacency or incompetency.
    Not sure I agree with this. Changing the ceo incentive plan fundamentally changed big business in america. It's not about whats best for the business. It's what best for the shareholders.
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  10. #10  
    Gunga galunga... gunga, gunga-galunga. DNoonan's Avatar
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    businesses exist for the benefit of shareholders (i.e. to create value for them)
    shareholders elect the Board of Directors
    the Board of Directors sets CEO pay
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  11. #11  
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    Quote Originally Posted by seldomseen View Post
    Not sure I agree with this. Changing the ceo incentive plan fundamentally changed big business in america. It's not about whats best for the business. It's what best for the shareholders.
    Most activism advocating for shareholders is to improve operations though.

    It provides clear checks and balances that weren't in place before. It isn't always perfect but on average companies with activist investors tend to do significantly better after they take a position. Most of the time they take positions in companies that clearly need to make changes but are too stupid to figure that out themselves. More rights for shareholders the better.....

    As far as what's best for business/shareholders, that was happening a long time before activism tookoff. Companies being too short-term oriented just a sign of the time "instant everything" times we live in.
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    Gunga galunga... gunga, gunga-galunga. DNoonan's Avatar
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    i think activists can be good at times as long as they arent too short sighted
    there are some complacent, long tenured Boards out there that need a kick in the ass by an activist
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  13. #13  
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    Quote Originally Posted by DNoonan View Post
    i think activists can be good at times as long as they arent too short sighted
    there are some complacent, long tenured Boards out there that need a kick in the ass by an activist
    Most board members really don't know shit. They just sit for the prestige and are fine with the status quo as long as the company is humming along.

    People can find hedge fund managers obnoxious but they do know the ins and outs of many of these industries.
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  14. #14  
    FreeRyanFerguson.com Illini's Avatar
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    It's a little silly to bring someone in to be CEO, the company declines as well as the stock price, then 4 years later he's out and has banked $100 mil. Of course anyone living in the real world with bills is going to question that. Probably a lot more corruption than we'll ever know about why people get those jobs too.
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  15. #15  
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    Quote Originally Posted by Illini View Post
    It's a little silly to bring someone in to be CEO, the company declines as well as the stock price, then 4 years later he's out and has banked $100 mil. Of course anyone living in the real world with bills is going to question that. Probably a lot more corruption than we'll ever know about why people get those jobs too.
    Great post
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  16. #16  
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    Yes there are some bad CEOs but if they have support of the board then shareholders pretty much have no power. This is where activism comes in to give shareholders more power.

    You can say it potentially gives them too much power and stifles long-term thinking but most research shows it improves business operations.
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  17. #17  
    FreeRyanFerguson.com Illini's Avatar
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    A more silly idea is the fact that people spend 100K to go to a university and major in business. That PhD academics that have never managed a lemonade stand are somehow business experts that are going to help people get business savvy. I have a business degree and I really don't have the slightest idea about what it was that I was supposed to have learned when I was there. Maybe if I had majored in accounting I would have gotten a specialized trade, but a business degree is a complete joke. College in general is going to be priced out of relevance in the coming years, unless you are going to be a doctor or lawyer.
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  18. #18  
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    yeah if Nike can find more kids to make their shoes and apparel cheaper they could pocket even more money guess it is kind of a great model
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  19. #19  
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    Quote Originally Posted by Illini View Post
    A more silly idea is the fact that people spend 100K to go to a university and major in business. That PhD academics that have never managed a lemonade stand are somehow business experts that are going to help people get business savvy. I have a business degree and I really don't have the slightest idea about what it was that I was supposed to have learned when I was there. Maybe if I had majored in accounting I would have gotten a specialized trade, but a business degree is a complete joke. College in general is going to be priced out of relevance in the coming years, unless you are going to be a doctor or lawyer.
    Don't agree at all.
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  20. #20  
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    Quote Originally Posted by slapshot View Post
    yeah if Nike can find more kids to make their shoes and apparel cheaper they could pocket even more money guess it is kind of a great model
    Exactly!
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  21. #21  
    RX Local JustinCruise's Avatar
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    Quote Originally Posted by Illini View Post
    A more silly idea is the fact that people spend 100K to go to a university and major in business. That PhD academics that have never managed a lemonade stand are somehow business experts that are going to help people get business savvy. I have a business degree and I really don't have the slightest idea about what it was that I was supposed to have learned when I was there. Maybe if I had majored in accounting I would have gotten a specialized trade, but a business degree is a complete joke. College in general is going to be priced out of relevance in the coming years, unless you are going to be a doctor or lawyer.
    Wow you are on a roll

    This might be the best post I've read in 2015

    Absolutely spot on
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  22. #22  
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    It won't be priced out but disrupting the current model in terms of cost and quality should definitely happen.

    That should happen in a lot of industries that somehow manage to protect themselves and keep the status quo going though. Powers that be tend to be good at protecting their interests.
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  23. #23  
    Honey Badger Don't Give A Shit barman's Avatar
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    Quote Originally Posted by Illini View Post
    A more silly idea is the fact that people spend 100K to go to a university and major in business. That PhD academics that have never managed a lemonade stand are somehow business experts that are going to help people get business savvy. I have a business degree and I really don't have the slightest idea about what it was that I was supposed to have learned when I was there. Maybe if I had majored in accounting I would have gotten a specialized trade, but a business degree is a complete joke. College in general is going to be priced out of relevance in the coming years, unless you are going to be a doctor or lawyer.
    Excellent post

    In the year 2015 and beyond, paying tens (or even hundreds) of thousands of dollars to prepare oneself for a life as an employee seems a very poor ROI

    The USA and the Western world in general have frankly raised our standard of living to such a point that there is little reason for employers to pay more than $20-25 an hour for upwards of 90% of Jobs. Both service and manufacturing have been so progressive and streamlined that the pool of people who can do most jobs is large and plentiful.

    The days of starting with a company at an entry level of (using 2015 dollars) $10-15 an hour and then reliably seeing pay raises of 3-5% annually for 20-30 years are long gone.

    As ILLINI notes, save for specialty professions (medicine, engineering, science&research), choosing a life of being an employee assures one of being very unlikely to ever get paid more than the household average income.

    And with regards to medical, the past half century of doctors and medical personnel commanding higher than average incomes is falling to the wayside as the pool of qualified medical personnel is huge and the populace in general is becoming smarter and more able to self-medicate.

    As for the theme of the OP by my forum pal ENFUEGO (smile) astutely note, if someone feels grumpy about how much the CEO of a company gets paid, MYOFB

    And while you're at it, start your own business and build it to a level where it is producing hundreds of millions in annual revenue. Then lead by example and see to it that you and/or your stockholder elected CEO is paid a more middlin' wage than whatever you originally deemed to be Too Much.
    If your mouth gets dry, You Plenty High
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  24. #24  
    Honey Badger Don't Give A Shit barman's Avatar
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    Oh and most certainly if one has been paying any attention to the true financial opportunities of the legal profession in the 21st century, it would be fair to say that spending tens or hundreds of thousands of dollars to get a law degree is at best a long shot to lead one to financial independence.

    Some of my closest colleagues are long time attorneys and can point to plenty of empirical data showing that the averrage income in first ten years of law school grads is likely in the $500,000 range due to the glut of new law school grads created during the past quarter century
    If your mouth gets dry, You Plenty High
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  25. #25  
    RX Junior skoda's Avatar
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    Quote Originally Posted by Enfuego View Post
    This is the part I don't get. Why not millions and millions? It's their company. They can get paid what they want.
    CEO aka Boss don't get either so your not alone Enfuego...... If they shared with their employees who are part of the reason they are successful this probably would mean more everyone. Now if the CEO did all the work themselves then they can have the millions!

    Enfuego do you understand now?
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