ceo payouts are an outrage?

[Deleted]

How much would you pay your ceo?

CEO payouts have been heavily discussed lately.Some people think the huge amounts of money they get is a disrespect to the middle class and others think it's a core and important aspect of kapitalism.
What does the community of mmo-champion think of it?

We can find out like this.
Imagine you own a company.It's a healthy company.Today you're going to decide about the salary of 3 of your employees.
You have 100 000$ or € to share amongst your CEO,your company doctor and the company electrician.
Your CEO has always done a good job.You're friendly with him,he's always very sympathetic and charismatic.
Your company doctor is an old man.Nothing specific.
Your electrician has been in the company for more then 10 year.You once had a brief conversation with him.A fine fellow.He talked about his 2 kids.

How much would you give each of your employee?You have 100 000$ to split into 3 salaries.
Don't look for any logic in the amount of money,100 000$ is a random and round number.The purpose is to see how much everyone would pay each employee.
How much would you pay each employee and why?And specifically the CEO?

[semaphore]

It should be based on how much value CEOs actually bring to the performance of the company. The outrage is over the perception that they are rewarded far beyond their actual value.

We can find out like this.

It's really not anywhere close to any actual information that would be needed to give an assessment that's simply based on emotions.

[IRunSoFarAway]

100,000 isn't enough to give to all three of them without making one of them have a horrible salary, so I'd divide it up equally and give them all horrible salaries.

Or do 50(ceo) 25 and 25, I can't imagine the doctor and electrician have much to do, you don't tell us what this business even is.

[Deleted]

It should be based on how much value CEOs actually bring to the performance of the company. The outrage is over the perception that they are rewarded far beyond their actual value.


It's really not anywhere close to any actual information that would be needed to give an assessment that's simply based on emotions.

I know.I said not to look for logic.
It's a simple way to show what people think.
Tell me how would you divide the money?

---------- Post added 2013-03-12 at 03:57 AM ----------

100,000 isn't enough to give to all three of them without making one of them have a horrible salary, so I'd divide it up equally and give them all horrible salaries.

Or do 50(ceo) 25 and 25, I can't imagine the doctor and electrician have much to do.

A full-time job as a doctor is not much to do?Or as an electrician?

[IRunSoFarAway]

A full-time job as a doctor is not much to do?Or as an electrician?

Considering you don't tell us what kind of company it is, I'm not sure how I'm supposed to take it other than, there's a guy that helps run the company, then two random professions that work for it.

[Furiex]

CEO's are only there to soak up money, fill a position that is useless, since more often then not they hire more people to do there job so they sit in a office and plan there next family vacation. CEO's in my own opinion deserve jack shit. Its the workforce that busts its ass everyday to make a good living and its a disgrace how poorly they get paid. Im just happy I made my own business and make a comfortable living on my own. Worked in a factory for about 4 months. The Plant manager/President/ Vice pres. (3 different ppl all making over 150k a year) were seen maybe 2 times? if not less, and usually were on vacation. And no im not kidding about vacation. Since the secretary was a family friend.

[Spectral]

Without knowing what my company is, this is impossible to determine. Some CEOs have remarkably expertise and would be quite difficult to replace.

[Laize]

It should be based on how much value CEOs actually bring to the performance of the company. The outrage is over the perception that they are rewarded far beyond their actual value.

What right does anyone have to be outraged over how someone else spends their own money?

If a company wants to pay their CEO $5 million then why the hell not? Unless you're a shareholder (and the CEO did poorly) it's no skin off your back.

[Deleted]

Considering you don't tell us what kind of company it is, I'm not sure how I'm supposed to take it other than, there's a guy that helps run the company, then two random professions that work for it.

You know what you need to know.Don't look too far.The CEO is doing a good job.How much would you pay him compared to the other 2?

[semaphore]

What right does anyone have to be outraged over how someone else spends their own money?

When it's money given to them by taxpayers, people have every right to be outraged.

[Furiex]

5 mil? how about 2 mil, and divide the 3 mil amongst the workforce. Makes way more sense

[Kraenen]

what exactly do CEOs do? make deals? file papers? organize people? those are honestly not "difficult" or "straining" duties.

[Deleted]

5 mil? how about 2 mil, and divide the 3 mil amongst the workforce. Makes way more sense

By workforce you mean a whole bunch of employees?
What makes the ceo so special to be worth the whole workforce?

[zerocoolhack]

The company I worked for was closing stores left and right and laying off a ton of employees while giving the ceo and corporate higher ups bonuses. I say the ceo gets shit.
Just look at GE, their ceo was given 20million dollars for last year. If I read it correctly GE had 13billion in profit for 2012, how much of that made it down to the workers in the form of raises? Hell GE is paying a man 1million a year to 2022 to not work. Golden Parachutes need to go too.

[lorien1973]

The "worst" example of CEO pay adds less than 1 cent to the cost of a product you buy from a major company.

Taxes imposed by a government will exceed that by a hundred fold.

I think your priorities are a bit askew.

[Veyne]

Fun fact of the day! A properly qualified electrician with the right specialties can actually make a pretty decent salary.

That being said, these numbers are arbitrary and a futile mental exercise. 40%, 30%, 30% wouldn't be a bad split. 45%, 35%, 20% would be more realistic.

[Harry Botter]

I have too much to worry about without worrying about what companies decide to pay the peopel who run them. But that is just me.

[Laize]

what exactly do CEOs do? make deals? file papers? organize people? those are honestly not "difficult" or "straining" duties.

Jeez... that's a misunderstanding of what they do... to say the absolute least.

CEOs determine corporate direction and strategy. They identify untapped markets and how to access them, the best ways to take market share from competitors and the best way to expand revenues. It's easiest to imagine a corporation like a military (That is, in effect, what it is... of a sort). If each individual worker is a soldier, their supervisor would be the Seargeant. Their job is to do their group's task as the orders come down from above.

A VP would then delegate orders to all the sergeants depending on what needed to be done.

A CEO is the general. He determines the huge, overarching corporate strategy. He identifies competitor weak points (as well as his company's own) and exploits (or fortifies) them. It really can't be put any simpler than that. His job is macro-strategy. Big picture stuff. And because he's the "general" and a corporation (and its competitors) never sleeps, he's on call 24/7 even on vacation.

[IRunSoFarAway]

I have too much to worry about without worrying about what companies decide to pay the peopel who run them. But that is just me.

You should get to the things that you're worrying about instead of telling us how much you have to worry about then.

what exactly do CEOs do? make deals? file papers? organize people? those are honestly not "difficult" or "straining" duties.

What an inexperienced and unknowledgeable view of what a CEO does, sure, most of them don't deserve the 10's of millions they get, but don't denigrate the position.

[Veyne]

what exactly do CEOs do? make deals? file papers? organize people? those are honestly not "difficult" or "straining" duties.

CEO is actually a pretty demanding job, and one that essentially keeps the company running on many different levels. You really don't have a clue what a typical CEO does. They don't sit around in an office playing miniature, 1-hole golf like you saw in those silly 90's movies. The whole livelihood of the company and all its employees lies in the CEO's hands. One wrong move could be catastrophic. And they have to manage the company on both macro and micro levels.

THAT BEING SAID, no CEO's job is worth hundreds, if not even in the thousands, more than their hard working employees that make the company work on the micro level.