CEOs got hefty pay raises in 2023, widening gap with the workers they oversee

https://abcnews.go.com/US/wireStory/ceos-hefty-pay-raises-2023-widening-gap-workers-110769837

by paulpauper • 2 years ago

64 17 2 years ago

abcnews.go.com

If you extrapolate this increase out another 40 years, what does C-Suite pay look like?

the american system is setup to increase stock prices, whether ceos have talent or not, being in the middle of this setup can help them justify their own salaries.

Sohcahtoa823• 2 years ago

The gap is only part of the problem.

I think the bigger issue is that CEOs will lay off employees to save $10M/year on wages, and the board will reward them with a $10M bonus.

It's not theft, but I feel like it's theft.

FireBeyond• 2 years ago

I think the bigger issue is that CEOs will lay off employees to save $10M/year on wages...

... and often spend another $5M in layoff expenses and severance...

wilg2• 2 years ago

Can you give an example of where that happened?

tubthumper82• 2 years ago

Alphabet, Meta, Microsoft, Uber, Salesforce are some recent-ish examples

https://abcnews.go.com/Business/ceos-pay-climbed-layoffs-tec...

imtringued• 2 years ago

When economists say that cutting wages boosts employment they seemingly forget that CEOs never cut their own wages and instead cut the wages of workers with the highest marginal utility for money.

blitzar• 2 years ago

You left off the bit where they have a pay freeze for all the remaining employees* to "keep control of costs"

* excluding c-suite employees who have recieved a 50% salary increase this year

euroderf• 2 years ago

What part of neotechnofeudalism don't you get ?

SilverBirch• 2 years ago

This kind of reporting really annoys me. The news is the aggregate. It's the fact that on average the CEO pay went up by more than worker pay. To bring context to this they get a quote from someone, and the quote literally could have been said any year in the last 50 years. You know, unlike previous years, this year boards really want to retain good CEOS. Ok yeah, because we all remember 2018 when a number of boards fired CEOs they thought were doing a great job. Sure, Broadcom is killing it, but are we really going to justify this average by focusing on the 1 guy that like 20x'd his company over the last 15 years?

Note how the article doesn't mention the performance of any CEO at the bottom of the list? Or any CEO whose compensation rose but shareprice fell?

Really we want to see 2 things: How much of executive pay increases are accounted for simply by the stock market moving upwards on average (ie, compensation not correlated with individual CEO performance) and how much of the average is impacted by distributional effects (ie, did Broadcom really just move the whole market on its own). Neither question answered by the article.

mensetmanusman• 2 years ago

If we don’t pay our leaders more, they would have to carpool with us. Not fair!

iamleppert2• 2 years ago

Get the bag!

iamleppert2• 2 years ago

Money is the only thing that matters, remember that. Getting the bag is all that matters, so go get the bag!

CEOs got hefty pay raises in 2023, widening gap with the workers they oversee

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