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0 pointsyters6y ago0 comments

Yes, that's my simple explanation for the hugely disproportionate salaries CEOs earn. Two possibilities:

1. They are somehow superhumanly increasing the company's bottom line

2. They target companies with enormous amounts of money and intentionally influence their salary to become very large, independent of their job performance

Insofar as #2 is possible, that seems the most plausible explanation for large CEO salaries. Unless the people determining the CEO's salary are somehow completely firewalled off from his influence, it is hard to see how #2 is not possible.

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s1artibartfast6y ago

Or 3. CEO's are superhumanly capable of DECREASING the company's bottom line. The board is paying to minimize their risk of ruin.

With consistent good management, mature organization should hope to see incremental growth. Bad management can destroy a company overnight.

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