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A comment on S&P 500 CEO Pay by Pay Ratio. Parent comment

Re:S&P 500 CEO Pay by Pay Ratio by djannzjkzxn on Wednesday June 03, 2020 @08:07PM (#23410703)
A CEO gets paid in stock, which the company later buys back with cash. Ergo, the CEO getting stock compensation reduced the amount of money available to pay workers.

GAAP requires companies to report stock compensation as an expense because it does actually move wealth around in a zero-sum fashion. It’s not a magic free money tree.

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Re:S&P 500 CEO Pay by Pay Ratio by missedthecue on Wednesday June 03, 2020 @08:12PM (#23410752)
No, the buybacks do. Youre making it seem as if the only way for a CEO to sell stock is if the company buys it back.

And it's specifically called a non-cash expense, because it doesn't affect cash (which salary does). You are correct in that it isn't a free money tree. It's paid for by shareholders. If the shareholders wish to pay their CEO $X, the government has no reason to intervene. It doesn't make the employees any better or worse off.

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