Comments by "Maxwell Benz" (@Tential1) on "CNBC"
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Ceos don't give themselves raises. That's the problem. You literally don't understand how a corporation is structured. Shareholders give ceos raises. So yes, if we shareholders could find a ceo to run a corporation for less money we would. But ceos are hard to find, and they are normally already wealthy. So, we pay them to stick around. You act like we want to pay them money... Dude if you can find competent ceos for 5 million a year, I will personally ensure you get paid 25 million a year. This is literally no problem, I work with tons of funds with billions in assets, 25 million is pocket change, if you can save companies/shareholders from paying out large compensation packages, and you can find these star employees for 5 million a year, I will make sure you get that 25 million. Hell, can probably make it more. But until then, shareholders will pay the CEO, rather than let a company run directionless and tank our whole multi billion dollar investment. You get paid what you're worth dude. And I hate to break it to you, it's worth paying the CEO 20 million manage your 100 billion dollar investment. Get it through your head, the ceo pay has NOTHING to do with you average workers. It's because shareholders pay to protect their investment. When you invest your money in a company, you decider whether you want to gamble on a random new ceo, or pay the current one more money. For example, I've got a f ton in jp. Morgan. If Jamie Dimon wants another 2-3 million, I will vote to approve. Jamie has done 12.5% for my investment annually. His pay, has no reflection on whether I'll pay the bank teller more money. I pay him to manage a 500B business. I pay a bank teller to do something I can arguably automate. I can't automate a ceo.
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If a ceo was paid 0, the average company could raise employee pay by $100 per employee. Probably less. Ceo pay has nothing to do with average worker pay. Workers work for the company. The CEO works for the boss the shareholders. As a shareholder, I'm happy to sign off on a 50 million a year ceo, and I voted for it. I am happy to pay Jamie Dimon whatever he wants. Because that's my decision, and I want the comfort of Jamie Dimon NOT LEAVING. I don't care how much you make as a bank teller. You're replaceable. As a shareholder, I don't care you make 1/10,000 of what Jamie Dimon makes. Because I'm not firing you if things go wrong. I can only fire him. So when Jamie Dimon grows my wealth 13% a year, and he wants a little off the top? I don't care. Because if I pay him 0, it won't increase my 13% a year return by a meaningful amount, but if I lose Jamie Dimon, and I get an idiot, I could literally lose my whole investment. That's why we pay ceos.
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