Friday, October 11, 2019

How did US CEO's Get SO RICH?

VOX How did American CEOs get so RICH?

The Rise of Stock Buy Backs Tells Part of the Story.

This is an excellent video. It explains somewhat how our systems and factors encourage companies in general, and executives in specific to make short term business decisions rather than responsible better long term decisions.

EPI CEO compensation has grown 940% since 1978 Typical worker compensation has risen only 12%

VOX Executive Compensation Details

CNBC CEO vs Your Compensation Growth

4 comments:

Anonymous said...

CEO's started getting rich when they figured out they could give themselves pay raises.

--Hiram

John said...

I think that was the point of the articles.

Just use profits to buy stock instead of new equipment.

Automatic raise...

Anonymous said...

The assumption behind stock buybacks is that they help raise stock prices. I don't think that's necessarily true. To me, stock buybacks are evidence of a management without ideas and a bearish sign. The job of management is to improve the business, not manipulate it's stock price.

--Hiram

John said...

Actually the board / owners set the goals and executive compensation plan.

Unfortunately often they seem interested in short term returns.