Anthony Repetto
Sep 7, 2018 · 1 min read

Your point was that a CEO’s pay is in stock, so that their interests are aligned with the company’s success. If the CEO tanks the company, they diminish the value of their own holdings.

Though, even if the CEO diminishes the value of the company, their stock is not worthless; they still walk away with a golden parachute. And, more importantly, the size of CEO compensation has increased dramatically compared to decades past. To argue that the CEO is paid fairly, you would need to show that CEO decision-making has become many times more valuable than it was in the past.

If a company succeeds, its value was created by its workers. Those ‘hundreds of millions’ of increased returns should not be attributed wholly to the CEO’s decisions. The key point is that CEOs are not compensated in proportion to their value.

    Anthony Repetto

    Written by

    Easily distracted mathematician

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