I don't disagree with 1000x, but it also strikes me that - at that level - you're more like a pro athlete than a regular salaried employee. Your career and job is on shakier ground as responsibility grows, with less direct control over what actually happens. So greater pay makes some sense to compensate for unpredictability, if you amortize the economic risk of stepping out into leadership across a lifetime.
Also the predominant theory of exec comp is that because it's tied to equity, your incentives as a manager are exactly aligned with what's best for the company.
> Your career and job is on shakier ground as responsibility grows, with less direct control over what actually happens
Contrarily, it seems that many execs "fail upwards" or at least fail into the exact same level, bouncing around C-suites and board positions regardless of the success of their companies.
Additionally - the term "golden parachute" exists for a reason. Many comp packages are structured so the execs are exiting with multi millions regardless of how the company does.
Nonsense. Exec comp is tied to backscratching with the Board, to the detriment of shareholders, who cannot generally exercise effective control under the rules cooked up by the Board and the execs for their own benefit.
Companies that earn profits for shareholders commensurate with market success are companies that the execs have not got their hooks securely into.
I'm confused, do you agree with them earning 1000x more or not? Frankly if there was a legislative way to tone it down so it more accurately reflects their value at the company, i'd like that. Risk, equity, company status, all play an important role but they don't play 1000x the role of any other job.
I don't know how to feel about it. Some Japanese aquaintances have liked to point out that that the difference in salary between top execs and low-level employees is much smaller in Japan. I usually counter that IMO personal experience USA companies pay salaries 2x to 3x more than Japan so I don't really care the boss makes 1000x more given they're paying me more as well.
I have no idea if that translates over the entire workforce though.
As a software engineer, starting software engineers in Japan start at ~$25k a year. Same ballpark as fast food jobs.
Also the predominant theory of exec comp is that because it's tied to equity, your incentives as a manager are exactly aligned with what's best for the company.