The historic UAW strike puts an exclamation point on more than a decade of efforts by Washington lawmakers to narrow the pay gap between top executives and workers.

  • Final Remix@lemmy.world
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    1 year ago

    Well they’re certainly not based on what value they bring, either, except maybe to themselves and the ever-useless shareholders.

    • SCB@lemmy.world
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      1 year ago

      If the people paying did not believe they were getting their money’s worth, they would stop paying that much. The problem is, the ceiling is set by whoever can realistically pay the most.

      My entire point is that CEOs are obviously overvalued, due to the ability of extremely large firms to pay exorbitant salaries via stock. This creates a negative ripple downstream that hurts a lot of smaller businesses.

      • JoBo@feddit.uk
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        1 year ago

        If the people paying did not believe they were getting their money’s worth, they would stop paying that much.

        No they wouldn’t. They’re the same people as get paid that much elsewhere. They have no incentive to lower the bar.

            • SCB@lemmy.world
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              1 year ago

              Competing firms and to a lesser extent the CEOs themselves, all have input. It’s a market.

              • JoBo@feddit.uk
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                1 year ago

                It’s nothing like a market. Who do you imagine the individuals are who set the CEOs pay, and how do you think their pay is decided?

                • SCB@lemmy.world
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                  1 year ago

                  Generally, but not always, the board will set a price range for CEOS. In smaller firms, the C-suite or President will, in some rarer cases the owner will have sole vote.

                  You seem to think CEOs dictate their own wages, which makes no sense. That’s not how getting a job works.

                  • JoBo@feddit.uk
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                    1 year ago

                    Exactly

                    Furthermore, the boards themselves typically include fellow C-Suite executives, leading to elite back-scratching as well as a never-ending upward spiral of executive compensation as companies compare their CEO salaries to others.

                    They’re not incentivised to get the best value for money. They’re setting the benchmarks by which their own pay is decided.