CEO pay is up 78% over the past decade

Re:CEO pay is up 78% over the past decade by joshstrange on Sunday May 15, 2022 @03:23PM (#31390215)

And what exactly are they going to sell without the software engineer to build it? I understand the role of sales (even if the vast majority I've had to work with are seedy/liars) and you can flip my statement to say "Well without a sales person it doesn't get sold and the software is effectively useless". I get that, both are needed. That said, the sales position shouldn't bring in multiples of what the engineering position does.

I full understand that's not the way things are done today, I also think we do things pretty terribly today.

Maybe a better way to phrase it is "I refuse to accept that they (CEO) are somehow worth so much more to the company compared to the people that actually do the work", "Smarter" was a bad word to use originally.

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Re:CEO pay is up 78% over the past decade by jtsiskin on Sunday May 15, 2022 @04:06PM (#31390574)

Think of it more as supply/demand and marginal revenue.

To simplify - a company should hire more/pay more until the marginal value of that employee < the marginal employee cost.

If the 2nd best option for CEO would result in increased revenue by 1%, and the best option by 3%, then it makes sense to pay up to 2% of revenue to get that better CEO.

Compare that with the best SWE option (in terms of marginal cost vs marginal gain) vs the 2nd best candidate.

Compared to the CEO, the SWE may be far more intelligent, more hardworking, and directly improve the product more. But pay is unfortunately not based on that or any notion of “fairness”

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Re:CEO pay is up 78% over the past decade by joshstrange on Sunday May 15, 2022 @04:11PM (#31390616)

> But pay is unfortunately not based on that or any notion of “fairness”

That’s somewhat the entire purpose of this HN post though.

I understand how we got here, I think it’s stupid and silly. Furthermore I don’t for a second believe that the information exists to actually make the calculations you list. There is literally no way to determine those percentages, it’s all a guess and often a bad guess IMHO.

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Re:CEO pay is up 78% over the past decade by whitesilhouette on Sunday May 15, 2022 @08:58PM (#31392748)

The fundamental reason why sales people are paid more than the Devs and the CEO more than Sales simply comes out of the difference in the knowledge of how much they know of the product's worth. The Dev never knows that the product would fetch 2000x of how much he is getting paid for creating it, whereas the Sales guy has a better picture. That's why the Dev never asks for that money in return for creating that product and hence he never gets paid that much. The CEO on the other hand, has the complete picture of the cost, profits as well as any changes in market forces that might impact the product, hence taking out 200x the Dev's remuneration, still sparing for the handouts to the other guys.

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