November 26, 2022

Executive Salaries a Joke

Is the man running General Electric really contributing 30 times more value to the company than, say, a senior-level design engineer? If you think so, you’d be in the minority of Americans.

This topic is rarely discussed in corporate offices, but outside of work, employees know who makes a difference, and it’s not the head man.

The way many experts tell it, execs salaries are set by cronies who ignore their fiduciary responsibilities to the shareholders by rewarding high-level managers with compensation packages far above their actual contributions to the company’s well being.

Here’s a simple litmus test: given that an average employee made $X and a CEO $Y 10 years ago, is it reasonable that the employee makes $2X today and the CEO makes $22Y? I didn’t think so.

marc

Marc is a software developer, writer, and part-time political know-it-all who currently resides in Texas in the good ol' U.S.A.

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