Re:CEOs’ pay climbed before layoffs at tech giants like Alph...
by hanniabu on Saturday August 05, 2023 @07:47PM
(#37017403)
> The salary of the CEO is tied to the stock price to incentivize growth
If it were a more reasonable amount I would agree, but with the amount they're given they could do a piss poor job, tank the stock value 90%, and still come out with $22M.... not much of an incentive
Re:CEOs’ pay climbed before layoffs at tech giants like Alph...
by cudgy on Sunday August 06, 2023 @04:11AM
(#37019939)
“ then the increase in salary represents the responsibility amount that the CEO has, as bad decisions can cost lots of peoples jobs and so on.”
He made bad decisions that caused people to lose jobs and they knew this well before the layoffs were announced. So he gets a raise and continued support?
Whenever a company starts, its not like the salary is auto set at 225M. The salary of the CEO is tied to the stock price to incentivize growth. Initially CEOs make way, way lower amounts (ignoring bullshit VC capital and inflated salaries).
If it so happens that the stock goes up with growth, then the increase in salary represents the responsibility amount that the CEO has, as bad decisions can cost lots of peoples jobs and so on.
Whenever you have market upswings that cause these ridiculously high 225M, its in a weird way the people saying the CEO wants to get paid that much. People spend more money that they have due to wfh and stimulus (granted by the people and who they vote for), causing revenues to go up, causing investment capital to go up (with a tieback to people putting money in things like 401k that depend on this as well), causing the market to go up, and so on.
TLDR, its not optimal, but it makes sense.