Many Companies Aren’t Prepared to Replace Underperforming CEOs

Re:Many Companies Aren’t Prepared to Replace Underperforming... by KerrAvon on Friday November 04, 2022 @04:11PM (#33473067)

I mean, we don't need to pay them that much. These obscene salaries weren't the norm a few decades ago. They're the end result of Reaganite tax policies failing to tax super-high-earners progressively.

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Re:Many Companies Aren’t Prepared to Replace Underperforming... by googlryas on Friday November 04, 2022 @04:13PM (#33473113)

That's only one part of the equation. But simply because the individuals get to keep their cash doesn't mean the companies need to give it to them.

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Re:Many Companies Aren’t Prepared to Replace Underperforming... by xdavidliu on Friday November 04, 2022 @04:45PM (#33473493)

In fact, I see no obvious connection between the marginal tax rate and how much companies choose to set CEO's pretax compensation. Can grandparent explain?

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Re:Many Companies Aren’t Prepared to Replace Underperforming... by robotresearcher on Friday November 04, 2022 @04:49PM (#33473542)

You might think that paying a 45% marginal rate tax instead of 94% would mean you could be paid less while keeping more! How did lowering personal income tax increase compensation?

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Re:Many Companies Aren’t Prepared to Replace Underperforming... by sdiacom on Friday November 04, 2022 @05:04PM (#33473731)

I imagine it's much easier for a CEO to justify divesting money from the company's profits to himself and to the government at a 1:1 ratio than it is at a 1:20 ratio.

I would posit that the CEO-to-government ratio acts, in a roundabout way, as a profit-to-pushback ratio. As a CEO, it may not be worth facing the board's reaction to spending two million dollars just so that you get an extra hundred thousand dollars.

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