Average CEO makes 354 times the average worker

razorsharp
Wed, 15 May 2013 19:55:36 +0000

Razorsharp, why is it so important to you that ceos make 350 times the average worker?

Do you think the economy is going to crumble if ceo pay was cut back?



In an efficient market, people should earn what their skills are worth in the market place. A CEO who can create billions of dollars in wealth is worth $27.5 million.

Since most CEOs are paid based on stock performance, if their compensation is cut, their incentives will decrease (all other things being equal) and wealth in the economy will decrease. That means the economy will get worse.

Your reference to Apple proves my point. Apple under the influence of Steve Jobs was able to produce products that enabled the stock to go to $700. Now that Jobs is gone, there are no new products under the new CEO and the stock has dropped $300 per share. How many billions was Jobs worth over Tim Cook? I say enough to justify whatever compensation Jobs wanted.