2006-08-27 14:01:06 · 8 answers · asked by Moon O 1 in Business & Finance ➔ Corporations
A company is basically a collection of investment projects. The CEO should arrange the company so it picks the best combination of projects so the companies market value rises.
Day to day the CEOs meet with analysts to help make sure the company is rated properly to aid its share price. They negotiate with the biggest customers and suppliers. They plan strategy with their directors. Make motivational messages for employees. Virtually all their energy should go into improving the company. There will always be something else to do or think about.
Primarily CEOs are paid so much because they are the best at what they do and can make a massive difference to the value of the company. The pressure is on the CEO, If things go badly the CEO will be sacked even if they appeared to be have been working very hard.
Another reason is to motivate those further down the workplace, they want the high salary and so work harder to get promoted. The pay gap between CEO and the next level down will always be the largest because once you reach CEO level there are no other promotion prospects. The motivation to be promoted to other levels includes both the initial pay jump and the implied pay jumps of further promotions, these do not exist at CEO level.
2006-08-27 14:16:40 · answer #1 · answered by Shadow 1 · 1⤊ 0⤋
Successful CEOs maximize stockholders equity. And as far as compensation is concerned, a simple economic principle apply: Offer and demand. The board of Directors will compensate a candidate based on their track record and his/her potential to produce results and maximize stockholder equity.
Let me remind you that athletes and actors follow this same model. It is not "fair", but who said that life was fair? Looks to me that this is an item for you to file away and move on to more productive endeavors.
Good luck.
2006-08-27 21:12:46 · answer #2 · answered by alrivera_1 4 · 2⤊ 0⤋
I'll take a guess? If our store manager makes 70,000 a year. A CEO of our grocery store company must make 150,000 or 200,000 a year. our stores are largest in midwest. but me? I just work in a bakery in that business. 13.00 an hour. but any ways~~. Those bigger CEO's of like microsoft? a million or 2 a year. That company makes $$$$$$ .
2006-08-27 21:26:58 · answer #3 · answered by mr_know_it_all_12345 3 · 0⤊ 1⤋
They sit on their butts. The boards do all the work. They get payed so much because they were smart enough to figure out how to get that job.
2006-08-27 21:07:21 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Lookin' for a job?
2006-08-27 21:57:07 · answer #5 · answered by Anonymous · 0⤊ 1⤋
that's the way capitalism works
2006-08-27 21:06:43 · answer #6 · answered by bakbiter 3 · 0⤊ 1⤋
1) Billions.
2) Because they deserve it.
If you can make me $10,000,000.00 each year I will glady will pay you $1,000,000.00 each year.
If you can make me $100,000,000.00 each year I will gladly will pay you $10,000,000.00 each year.
2006-08-28 04:07:52 · answer #7 · answered by Anonymous · 0⤊ 1⤋
CUZ HALF THE TIME THERE SUCKING THE BOSS!!!!!!!!!!!
2006-08-27 21:06:10 · answer #8 · answered by ladyindia2005 2 · 0⤊ 1⤋