Striking auto workers want a 40% pay increase–the same rate their CEOs’ pay grew

Re:Striking auto workers want a 40% pay increase–the same ra... by endisneigh on Monday September 18, 2023 @07:17PM (#37563444)

the supply of prospective management people definitely has kept up. there are literally tens of thousands of MBAs graduating every year, to say nothing of managers at existing F500 companies. there are only so many large companies, and thus so many CEOs.

look at tiny barely profitable companies, the gap between median wage and CEO is sometimes less than 2X.

all these takes on CEO pay when the reality is simple - CEOs are paid a lot because they the cost of being wrong is more than their pay. this results in companies that have a lot of money competing, driving up the price. the end. it's the same reason lebron james is paid 10X more than NBA average.

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Re:Striking auto workers want a 40% pay increase–the same ra... by nerdponx on Monday September 18, 2023 @07:22PM (#37563510)

> there are only so many large companies, and thus so many CEOs

This is a statement that there is low quantity demanded by the market. It's actually a great example of how the naive supply-and-demand argument doesn't make a lot of sense.

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Re:Striking auto workers want a 40% pay increase–the same ra... by endisneigh on Monday September 18, 2023 @07:33PM (#37563662)

how so? low supply, high demand for "perceived" good ceos. thus those large corporations can throw money at talent.

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