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Why do companies pay CEO $100M? Would guy who does it for $10M really be worse?
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Date: October 25th, 2024 10:55 AM Author: Nazca Redlines In 2022, Tim Cook made $100M. Sundar Pichai made $226M. Harvey Schwartz (Carlyle Group) made $186M. None of these guys founded or own controlling portions of their companies. So why are they paid 9 figures every year? There are tons of highly capable people who would be happy to run those companies for $10M per year. Are the guys demanding $100M really better? I doubt it. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48238764) |
Date: October 25th, 2024 10:55 AM Author: UhOh same for football coaches (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48238768) |
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Date: October 25th, 2024 11:06 AM Author: Nazca Redlines Disagree. Football is very black and white and zero sum. There is a winner and a loser. Saban, Meyer, Harbaugh won everywhere they went. They were worth whatever they were paid and more. Look at "top" programs foundering without a good coach. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48238821) |
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Date: October 25th, 2024 11:24 AM Author: UhOh sure, but what about all the guys in the middle still making bank? (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48238921) |
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Date: October 25th, 2024 1:19 PM Author: xD LOL @ including harbaugh in this list. he was a complete loser at michigan until he started cheating (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239526) |
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Date: October 25th, 2024 11:18 AM Author: prince j'rick mpanama (1) yeah, bad take. running a top college football program is a fuckton of work between recruiting, the transfer portal, raising money for the school, etc., and we haven't even gotten to the actual coaching the team part. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48238878) |
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Date: October 25th, 2024 10:56 AM Author: McBuzzsaw the $100M payments PROVE the board hired the most capable candidate.
seriously though, do i think the exact right apple ceo can make a 0.003% difference in apple’s market cap? sure. |
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Date: October 25th, 2024 11:09 AM Author: Nazca Redlines Point 1 is part of the real answer. Another part is the rest of the C-suite and board members like it because it justifies their exorbitant compensation.
Point 2 is missing the mark. Yes, the right CEO could make much, much more difference in Apple's market cap (or revenue, or income) than he receives in comp. The point still misses the mark because I doubt there is any good reason to believe that the guy who would do the job for $100M, but not $10M, is any better than a guy who would do it for $10M. |
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Date: October 25th, 2024 11:31 AM Author: McBuzzsaw point 1 was meant to be funny, but only because there is “truth” to it.
whether or not there’s a good reason to believe the $100M guy would do better than the $10M guy would depend on each individual circumstance, but i do believe it’s at least a reasonable possibility that would be the case in some instances. |
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Date: October 25th, 2024 10:56 AM Author: Self-serious Macbook Airplane Girl high-level employees of big companies just ransack them. they dont give a fuck about bs "stock prices" like proles when they can get millions in income. investing in publicly traded companies is like giving an interest free loan to some faggot to bang aids cum into your wife. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48238775) |
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Date: October 25th, 2024 12:24 PM Author: god's infinite disappointment (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239225) |
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Date: October 25th, 2024 1:23 PM Author: ,..,,,,,,....,,,..., They care intensely about stock prices for the exact interval from when they receive stock to when they sell it. Most of the millions in comp is equity, not cash. #1 sell signal is a CEO selling stock or insisting on cash-heavy comp and holding very little stock. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239540) |
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Date: October 25th, 2024 10:58 AM Author: Sean South of Garryowen It is obscene. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48238781) |
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Date: October 25th, 2024 11:13 AM Author: I Listen to Porn Podcasts Trump will stop this (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48238850) |
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Date: October 25th, 2024 11:26 AM Author: Sean South of Garryowen lol (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48238937) |
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Date: October 25th, 2024 11:14 AM Author: ,,,...,,......,,....,,,,,,,,....... Because a single decision can cost or earn Google several times that. So yeah it makes sense to pay (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48238857) |
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Date: October 25th, 2024 11:19 AM Author: Nazca Redlines 100%. But why do you think Sundar Pichai is more likely to make the right call than a guy who would take the job for $10M? There are many smart, capable, experienced people who would happily take the job for $10M. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48238890) |
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Date: October 25th, 2024 11:26 AM Author: ,,,...,,......,,....,,,,,,,,....... Because that’s how supply and demand work. If a bunch of companies are offering 100m they are going to get the better talent than companies offering 10m. Same reason big lawyers are way better than shit lawyers. Or do you think people stop caring about comp at a certain amount. Is that the theory? I have something to teach you about human nature if so. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48238940) |
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Date: October 25th, 2024 12:10 PM Author: Nazca Redlines The size of the "supply" of guys who will take the job for $100M is irrelevant. The point is, the demand for the guys who are part of that supply is irrational. Is there anything that actually demonstrates that guys who will only do the job for $100M are better than guys who will do the job for $10M. My point is, they won't actually do better. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239146) |
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Date: October 25th, 2024 12:16 PM Author: ,,,...,,......,,....,,,,,,,,....... Ok, so in your world there’s thousands and thousands of guys that are capable of being CEO and not a handful of them that stand out. Ok, yeah, guys like Elon and Steve Jobs etc are totally fungible. It’s insane (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239188) |
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Date: October 25th, 2024 12:24 PM Author: Nazca Redlines Musk and Jobs founded their companies. Totally different.
What exactly is a Tim Cook or a Sundar Pichai doing that someone else tapped for that role from elsewhere in the C-suite at those companies or from CEO of a smaller company wouldn't be doing? What makes you think they're better than the $10M guys? |
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Date: October 25th, 2024 12:26 PM Author: ,,,...,,......,,....,,,,,,,,....... Put them in the same room with the ceos making 10m and then sick a bunch of hostile investors on them with questions and it will be readily apparent (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239231) |
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Date: October 25th, 2024 12:13 PM Author: hank_scorpio lol, what are you four years old? (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239167) |
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Date: October 25th, 2024 11:23 AM Author: barnabyjones there are hundreds of ceos that can make the right call. paying one 100m when you can pay a similarly talented ceo 10m is retarded. Its almost as if there is a scam to all of this... (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48238913) |
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Date: October 25th, 2024 12:16 PM Author: Nazca Redlines (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239187) |
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Date: October 25th, 2024 12:18 PM Author: ,,,...,,......,,....,,,,,,,,....... I think in companies that are fully mature and pay out regular dividends and are not really making any strategic decisions then it’s a scam. For a company like Google? lol no. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239194) |
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Date: October 25th, 2024 12:22 PM Author: barnabyjones so you think Sundar is so smart he is worth 100m a year? a one of one? is he some sort of corporate jesus?
I hate to break it to you but business really is not that complicated. |
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Date: October 25th, 2024 12:24 PM Author: ,,,...,,......,,....,,,,,,,,....... Exec comp even at private equity backed companies is insane. Do you think PE wants to give their money away? Apparently all these PE bros didn’t realize that you never have to pay anyone more than a few million (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239226) |
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Date: October 25th, 2024 12:25 PM Author: Nazca Redlines (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239229) |
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Date: October 25th, 2024 11:21 AM Author: Ass Sunstein They just WRITE IT OFF, JERRY! (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48238899) |
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Date: October 25th, 2024 11:39 AM Author: HITLER TEAM SIX There is no incentive for companies to not pay it. The index fund companies control all the boards and they are all long the entire market so they dont care. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239015) |
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Date: October 25th, 2024 12:21 PM Author: Nazca Redlines Google's top 5 execs earned (or maybe "received" would be a better way to phrase it) $350M in 2022. If you cut that to $50M, you boost earnings by $300M. That's nothing to sneeze at. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239208) |
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Date: October 25th, 2024 12:23 PM Author: ,,,...,,......,,....,,,,,,,,....... When you are talking about trillion dollar company then that’s a drop in the bucket and you’re totally willing to pay that for the comfort that you haven’t handed the keys of the Ferrari over to idiots. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239223) |
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Date: October 25th, 2024 12:41 PM Author: posting in histrionic thread Cr, the index fund companies just write it off (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239317) |
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Date: October 25th, 2024 12:59 PM Author: HITLER TEAM SIX ? (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239410) |
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Date: October 25th, 2024 12:12 PM Author: .....,,,,,...,,,,,..,.,,,,,.,,. A good CEO that moves the needle and stock price is worth it, easily. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239156) |
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Date: October 25th, 2024 12:23 PM Author: barnabyjones then this proves how bullshit and corrupt the stock market is. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239222) |
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Date: October 25th, 2024 12:27 PM Author: aspie That’s not the point, the point is that there are a lot of people who could do that (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239236) |
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Date: October 25th, 2024 12:42 PM Author: Nazca Redlines CR. Or it's happening independent or even in spite of the CEO. E.g., the whole market is going up or a division within the company develops a great new product or a competitor falters. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239321) |
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Date: October 25th, 2024 12:14 PM Author: Sickly argumentative UES Jew in puffy jacket Their friends are on the corpirate board. It's like the old Soviet Union. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239169) |
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Date: October 25th, 2024 12:20 PM Author: ....;..;...;;;.....;;......;; CEO's that make that much have typically shown themselves to be successful in terms of increasing market cap relative to the rest of the market. Why would a company risk tens of billions on some dude whos never done it before?
Plus $90 million is literally meaningless when a stock's fluctuations are billions a day |
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Date: October 25th, 2024 12:26 PM Author: Nazca Redlines Most of these guys haven't done it before. I don't think Cook or Pichai or most of the others were CEO of anything before they were tapped for their CEO jobs. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239234) |
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Date: October 25th, 2024 2:19 PM Author: ....;..;...;;;.....;;......;; What was Tim Cook's original salary? (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239808) |
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Date: October 25th, 2024 12:23 PM Author: Karlstack? It motivates the other senior executives to work harder (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239221) |
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Date: October 25th, 2024 12:29 PM Author: LathamTouchedMe It's a skim and board members are in on it. There's no easy way for shareholders to fight back and honestly fighting it is pointless because paying the CEO $10 million instead of $100 million, like your scenario, does nothing to change the stock price. When mafia ran a skim on Vegas casinos in the 70's, they got RICO charges and lengthy sentences. When corporate America does it, the Delaware courts legalize it under BJR. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239253) |
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Date: October 25th, 2024 12:56 PM Author: ........,,,,,,......,.,.,.,,,,,,,,,, Because our accounting rules let people treat stock grants like monopoly money.
Some fast food CEO will figure out a way to scam $1 per paycheck off all the fry cooks, saving the company $5 mm, and then the board will award him $10 mm in stock for delivering on their EBITDA guidance.
I feel like if you made them get paid in cash and the salaries affected business in the same way other employee comp does, there's no way they'd be making $50 millin. |
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Date: October 25th, 2024 1:01 PM Author: si Doobs n'existait pas, il faudrait l'inventer They usually get like $1-3MM cash which is a rounding error and then a bunch of stock which the companies don’t care about because stock printer brrrrr. The dilution caused by paying these people $100MM is meaningless in the context of their market cap and it gives them a big incentive to seek a higher share price. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239427) |
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Date: October 25th, 2024 1:08 PM Author: god's infinite disappointment do you wanna run one of these faggot fucking companies
and answer to their faggot fucking boards and shareholders |
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Date: October 25th, 2024 1:19 PM Author: McBuzzsaw op should found and maintain a controlling stake in a trillion dollar company and find a ceo to run it for $10mm. think about how much money he would save! (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239523) |
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Date: October 25th, 2024 2:07 PM Author: posting in histrionic thread If top CEOs only got $10 million these people would say they should find other people to do it for $3 million (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239757) |
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Date: October 25th, 2024 2:10 PM Author: ,,,...,,......,,....,,,,,,,,....... (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239762) |
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Date: October 25th, 2024 1:20 PM Author: sealclubber because (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239529) |
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Date: October 25th, 2024 1:40 PM Author: ,..,,,,,,....,,,..., CEO salaries were much lower as a multiple of average comp in the recent past - and one person is one person regardless of the size of the org they sit on top of. Like a CEO of a trillion dollar company has no idea what the fuck is going on in many parts of the business and is completely dependent on his direct reports feeding him useful inputs and effectively implementing orders, and likewise down the chain. Something like coach or athlete megasalaries actually makes more sense, because a top performer visibly and provably drives a huge fraction of wins and revenues within the tight boundaries of a sport vs a megacorp that operates all over the world with multiple lines of business.
So you can be pretty confident that the answer to high comp is in large part that CEOs would like more money and in current power structures and corporate cultures no one is stopping them and those who theoretically could stop them are in on the scam. And you shouldn’t be so mad about tech CEOs that have led successful companies because it’s probably worth it to a Google or Apple to have a top boss rather than the next guy who would take less money. You should be mad about the CEOs of companies that have destroyed billions in investor value and still walked away with huge wealth - like most of the media/telecom guys, tech companies that got out-competed like Intel or Research in Motion/Blackberry, etc. |
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Date: October 25th, 2024 1:57 PM Author: Nazca Redlines (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239698) |
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Date: October 25th, 2024 2:12 PM Author: ,,,...,,......,,....,,,,,,,,....... There’s obvious reasons for this but proles don’t want to hear it. Labor has been devalued. Capital is king. Of course the bros that deploy the capital get compensated more. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239771) |
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Date: October 25th, 2024 2:26 PM Author: fuck me in my loose butthole why would a ceo making 100m a year not retire after 2-3 years? (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48239850) |
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Date: October 25th, 2024 3:15 PM Author: ,,,...,,......,,....,,,,,,,,....... Human nature. Everyone wants more and everyone has a price (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48240179) |
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Date: October 25th, 2024 4:02 PM Author: :;::.,,..;.,,;.,.....,, some CEOs are worth it
a side benefit is that you get executives one rung below fighting harder to get promoted |
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Date: October 25th, 2024 4:07 PM Author: borders2 Why does this thread have so many responses (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48240482) |
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Date: October 25th, 2024 4:14 PM Author: I Listen to Porn Podcasts Good flame topic. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48240511) |
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Date: October 25th, 2024 4:32 PM Author: McBuzzsaw temporarily-embarrassed-billionaire of counsel xo poas want to justify f100 ceo compensation packages so they’ll be set up when their brilliance is finally recognized. (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48240614) |
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Date: October 25th, 2024 5:29 PM Author: borders2 The more interesting question is why more of this doesn’t trickle down. Like at some level you have a VP making $5m/year managing Losers who make $280k. There has to be a steep dropoff somewhere. Like if the CEO can get the board to suck his dick and pay him $50m, why can’t this be done below a certain level? Crab bucket? (http://www.autoadmit.com/thread.php?thread_id=5617920&forum_id=2#48240780) |