Journalist asks GM CEO Mary Barra about $29 million paycheck after UAW strike — On average, the Detroit Three’s CEOs are making 40 percent more today than they did four years ago::On average, the Detroit Three’s CEOs are making 40 percent more today than they did four years ago
One thing about CEO pay most people don’t quite seem to realize is that if you don’t pay enough they’re going to go work for your competition. That’s why even the CEO’s of charities gets paid so well, even though they could still probably earn more working somewhere else. It’s like if one hospital pays a surgeon 20k/month and another one pays 7k/month then where do you think they’re going to work at?
I’m not saying these huge salaries are justified. Just pointing out that it’s game theory in action.