Lars Fosdal i can speak from personal experience, just finding a resource worth investing in is a challenge on its own, now, if you have a CEO that handles all of that for you and brings in revenue, i wouldnt care so much about his mistakes, so long as the scale tilts towards profit.
those numbers might seem unfair, but you have to look at the bigger picture.
The bigger picture is that there is a COO that makes things go around, and a sales team that lands contracts, the team leads, the workers, i.e. all the people that actually makes things happen – realizing the value of a company. A good CEO builds good teams – but it is the team that is of value – not the individual. A bad CEO still rakes in top cash, even when running a company into the ground.
Dorin Duminica Hehe, you got a point there.
But – IMO, since it always is a team effort – the team lead remuneration should not be in a different order of magnitude than what his team makes. It doesn’t make sense.
Lars Fosdal perhaps, however, picture this:
– you’re a VC, involved in many businesses, your time is not only very expensive, but extremely limited;
– you need the business to work on it’s own, with minimal intervention from your part, after all, it took you quite a while to get it up and running, you invested a lot in it, where’s your ROI?!
– you find an individual that shares some(or possibly all) of your views, and presents solutions to problems you know you have, you have but don’t know, and anything in between; an individual that takes responsibility;
question:
– if that individual can spare you time and effort, isn’t s/he worth a lot more to you than a typical employee/worker that comes from 9 to 5, that does not want responsibility, that usually cares only about the pay day and self growth?
it may seem that a CEO’s job is simple and easy, after all, what’s so difficult about talking to other people and giving orders? I mean, anyone can give orders, am I right?
while it may seem simple to just hire people that know their stuff, it’s a lot more than that, and I highly encourage you to take part of a head-hunting campaign and see how challenging things can get, and that’s only the beginning of the journey.
Anyone got that link in the end? I’d like to see the source of this data – and what a “top ceo” is.
In Norway this is simply untrue – the prime minister has 3x normal salary – and a incredibly well payed ceo got 10-20x a normal salary. (there are people payed more – but I can count them om my fingers).
Thomas Schulzki I think the confusion comes from salary + share value of iconic figures from big corporations such as Apple, Google, etc., you know, on the internet, everybody is equal… (;
Yea – total wealth = salary.
But then again, I think some people “get more than they deserve” – the brokers of “The Government Pension Fund Global” (formerly The Government Petroleum Fund) got a bonus of 200Mnok for not “loosing” more than 396 billion kroner in the first quarter of 2016… (but they are not CEO’s)
(the Norwegian prime minister has a yearly salary of 1,5Mnok)
(this is a truly biased post – and even though the numbers are true – they are presented in a way that makes no possible sense)
some CEO’s in bigger companies(a few hundred employees or so) do get quite a hefty salary, with that responsibility, they’d better!
I don’t know any CEO/owner that pays himself more than 2-3x the average salary(some far less), partly because it doesn’t make much sense, and partly because they’d rather invest that money in company’s growth, myself included(I got absolute minimum wage, and that, only because it has advantages).
A corporations purpose is to make it’s CEO and share holders wealthy. Nothing more. What do you not understand? Don’t like it? Start a competing business, go work somewhere else.
There is nothing “FORCED” here…you VOLUNTEER to work for a place at an AGREED upon price and BENEFITS. Sometimes you’re FORCED into a UNION which will work on IT’S BEHALF and try and get you a better deal because your uneducated and don’t have any negotiating skills to demand otherwise.
The problems is that a CEO is not able to spend money as effectively as 296 individuals regarding full capitalistic economy.
So CEOs have improved their value whole ordinary employees have not?
The real downside is that it is only the workers who pay for the mistakes of these CEOs.
Lars Fosdal i can speak from personal experience, just finding a resource worth investing in is a challenge on its own, now, if you have a CEO that handles all of that for you and brings in revenue, i wouldnt care so much about his mistakes, so long as the scale tilts towards profit.
those numbers might seem unfair, but you have to look at the bigger picture.
The bigger picture is that there is a COO that makes things go around, and a sales team that lands contracts, the team leads, the workers, i.e. all the people that actually makes things happen – realizing the value of a company. A good CEO builds good teams – but it is the team that is of value – not the individual. A bad CEO still rakes in top cash, even when running a company into the ground.
to sum it up:
– team effort when things go well;
– individual(CEO) that messes things up;
got it!
Dorin Duminica Hehe, you got a point there.
But – IMO, since it always is a team effort – the team lead remuneration should not be in a different order of magnitude than what his team makes. It doesn’t make sense.
Lars Fosdal perhaps, however, picture this:
– you’re a VC, involved in many businesses, your time is not only very expensive, but extremely limited;
– you need the business to work on it’s own, with minimal intervention from your part, after all, it took you quite a while to get it up and running, you invested a lot in it, where’s your ROI?!
– you find an individual that shares some(or possibly all) of your views, and presents solutions to problems you know you have, you have but don’t know, and anything in between; an individual that takes responsibility;
question:
– if that individual can spare you time and effort, isn’t s/he worth a lot more to you than a typical employee/worker that comes from 9 to 5, that does not want responsibility, that usually cares only about the pay day and self growth?
it may seem that a CEO’s job is simple and easy, after all, what’s so difficult about talking to other people and giving orders? I mean, anyone can give orders, am I right?
while it may seem simple to just hire people that know their stuff, it’s a lot more than that, and I highly encourage you to take part of a head-hunting campaign and see how challenging things can get, and that’s only the beginning of the journey.
Dorin Duminica – I’ll get around commenting on this – but today I simply don’t have the time.
Anyone got that link in the end? I’d like to see the source of this data – and what a “top ceo” is.
In Norway this is simply untrue – the prime minister has 3x normal salary – and a incredibly well payed ceo got 10-20x a normal salary. (there are people payed more – but I can count them om my fingers).
Thomas Schulzki I think the confusion comes from salary + share value of iconic figures from big corporations such as Apple, Google, etc., you know, on the internet, everybody is equal… (;
Yea – total wealth = salary.
But then again, I think some people “get more than they deserve” – the brokers of “The Government Pension Fund Global” (formerly The Government Petroleum Fund) got a bonus of 200Mnok for not “loosing” more than 396 billion kroner in the first quarter of 2016… (but they are not CEO’s)
(the Norwegian prime minister has a yearly salary of 1,5Mnok)
(this is a truly biased post – and even though the numbers are true – they are presented in a way that makes no possible sense)
Thomas Schulzki it’s internet truth my friend (;
some CEO’s in bigger companies(a few hundred employees or so) do get quite a hefty salary, with that responsibility, they’d better!
I don’t know any CEO/owner that pays himself more than 2-3x the average salary(some far less), partly because it doesn’t make much sense, and partly because they’d rather invest that money in company’s growth, myself included(I got absolute minimum wage, and that, only because it has advantages).
A corporations purpose is to make it’s CEO and share holders wealthy. Nothing more. What do you not understand? Don’t like it? Start a competing business, go work somewhere else.
There is nothing “FORCED” here…you VOLUNTEER to work for a place at an AGREED upon price and BENEFITS. Sometimes you’re FORCED into a UNION which will work on IT’S BEHALF and try and get you a better deal because your uneducated and don’t have any negotiating skills to demand otherwise.