Re:The rise of the corporate colossus is a giant problem
by aub3bhat on Thursday September 15, 2016 @11:35PM
(#12511655)
You can't divide market capitalization by number of employees and compare that with "yearly" salary figure. A better comparison would be to divide revenue by number of employees.
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Re:The rise of the corporate colossus is a giant problem
by amelius on Friday September 16, 2016 @04:17AM
(#12512605)
At least explain why this is not a good first-order comparison.
Re:The rise of the corporate colossus is a giant problem
by planteen on Friday September 16, 2016 @08:12AM
(#12513447)
You are going to have high market cap per employee in asset rich companies like oil producers and REITs. The value in those cases is primarily the mineral and real estate assets, not the employees, so tying salaries to it doesn't make a lot of sense.
Re:The rise of the corporate colossus is a giant problem
by amelius on Friday September 16, 2016 @08:59AM
(#12513651)
Yes, but in the case of silicon valley, the actual assets aren't that big.
Re:The rise of the corporate colossus is a giant problem
by oli5679 on Friday September 16, 2016 @08:34PM
(#12518440)
Annual salaries come from our weird convention of defining years as groups of 365 days. A software engineer can earn $100k/year but also $1m/decade. Neither is comparable to a company being worth $xbillion because you're comparing stocks with flows.