News for hackers. Stuff that matters.

A comment on McKinsey, technocratic management, and structural inequality. Parent comment

Re:McKinsey, technocratic management, and structural inequality by dcolkitt on Monday February 03, 2020 @11:40PM (#22232470)
The median annual compensation for the median Fortune 500 company is $72,000 per year.[1] So total redistribution would represent an increase of 0.3% to the take-home pay of the average big company worker.

Again, no matter how you want to slice it, aggregate CEO pay is simply too small in magnitude relative to aggregate American salaries to have any meaningful impact. At most you could say something about it being symptomatic of a larger problem, but CEO pay is absolutely not the direct cause of slow growth in wages.

[1] https://www.usatoday.com/story/money/business/2018/05/25/ceo...

[ Parent | on HN ]
Re:McKinsey, technocratic management, and structural inequality by AstralStorm on Tuesday February 04, 2020 @05:24AM (#22234077)
I'd say lobbying and voting with money is, and CEOs are responsible for it.

The richer they are, the less they care about wage or product, the more they care about extracting rent - via investment or cuts, causing stock market reactions, which ignore all those things.

They tend to also lose the common touch, just like the aristocracy that preceded them.

[ Parent | on HN ]