Re:How People Get Rich Now
by crazygringo on Monday April 12, 2021 @04:33PM
(#26784790)
> taken from the average employee cut of the profits
There's never been any such thing. In the US, salaries have always been determined by the supply and demand of skills, they've never been linked to profitability or some share of it.
And stock options and stock grants are relatively new (not really a thing in 1960), so if anything the actual employee share of profits -- since the value of stock is future profits discounted -- has gone up.
The idea that CEO compensation is somehow "at the expense of" employee compensation is a pure myth. If CEO's were paid less, the extra money would flow to shareholders, not employees.
Re:How People Get Rich Now
by lanstin on Monday April 12, 2021 @04:58PM
(#26785099)
And the shareholders are often held by pension or 401k funds for the employee retirements. Certainly in aggregate, and all the companies have seemed to decide that this fleecing is a good thing all at once.
There's never been any such thing. In the US, salaries have always been determined by the supply and demand of skills, they've never been linked to profitability or some share of it.
And stock options and stock grants are relatively new (not really a thing in 1960), so if anything the actual employee share of profits -- since the value of stock is future profits discounted -- has gone up.
The idea that CEO compensation is somehow "at the expense of" employee compensation is a pure myth. If CEO's were paid less, the extra money would flow to shareholders, not employees.