“average top CEO compensation was $15.6 million in 2021, up 9.8% since 2020. In 2021, the ratio of CEO-to-typical-worker compensation was 399-to-1 under the realized measure of CEO pay; that is up from 366-to-1 in 2020 and a big increase from 20-to-1 in 1965 and 59-to-1 in 1989”

  • alvvayson@lemmy.world
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    1 year ago

    The CEO is the link between the company and the shareholders.

    They get paid by the shareholders to extract as much value as they can from the company to the shareholders.

    On the other hand, if the company needs more investment, the CEO is the one who has to attract that investment, too. Otherwise the company will stall or go bankrupt.

      • Ethalis@jlai.lu
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        1 year ago

        A company that makes a 0$ profit and 0$ loss should be considered a successful one. Such a company would manage to pay all its costs (including wages, r&d, etc.) and function at peak efficiency.

        • captainlezbian@lemmy.world
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          1 year ago

          I disagree. Some profit is good. It allows you to keep a coffer so you can keep afloat in bad years, as well as to buy back stocks for the employees. Once employee owned any profit can be voted on to either be added to budgets or distributed out amongst the employees.

      • Gork@lemm.ee
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        1 year ago

        Year over year growth is completely unsustainable. They should be content with making healthy profits in good times, and making any profit at all during times of recession.

      • Showroom7561@lemmy.ca
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        1 year ago

        If you can’t keep your business afloat on its own, if you require injections of cash from investors to avoid bankruptcy, that business should fail. And there’s nothing wrong with a business stalling, in my view. There should be limits to growth.

        This is the right answer.

      • SCB@lemmy.world
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        1 year ago

        Investors are primarily for M&A when brought on late.

        Investors brought in early still deserve a day, because it is partially their company.