when a ceo makes a salary of unbelievable proportions don't you think the product is over-priced?

Question

if a ceo makes a salary and bonus of over $50 million don't you think the product he is selling is over priced and something should be given back to the consumers

Answer 1

absolutely...and the price payed is not only by the consumer but the employee as well. With salaries like these it's no wonder India is booming and taking our jobs.

Answer 2

No, a CEO's compensation has no bearing on whether a product is overpriced. The key measure to determine whether a product is overpriced (or not) is to add up the cost of manufacturing such product yourself versus the price of the product being offered for sale. If it is cheaper to make it yourself, the company offering their product for sale will soon be in financial trouble if everyone was like you.

If there is a big difference, it will also attract competitors, that will eventually bring the price down.

Answer 3

If you have a company like GE that makes 20 billion dollars in profit, do you think its unreasonable to pay the CEO ¼ of 1%? (0.0025%)

What about if you are CEO of much smaller company that makes 1 million in profit? Would 2500 dollars be too much of a bonus for that CEO? Its the same as the above exactly just scaled down. 2500 in bonuses to a company with 1 million in profits is the same as 50 million in bonuses with a 20 billion dollar profit.

Answer 4

not necessarily.
the only thing that this fact leads me to think is : the other employees are getting the short end of this deal.
And yes it is very common. Inflation rates usually go up higher in a year than someone's pay raise.

Answer 5

You'd think so! Then again... how much do football and basketball players make? Aren't they overpaid too?

I could argue this point with ANYONE who makes more money than me!

Answer 6

like oil (Exxon, Haliburton etc.)?

I think the govt. needs to ensure there is no "Gauging" going on.