All you have to do to earn $42,000 a day, or $11 million each year, is be average.
Wait, when I say “average,” I mean “average CEO.” That’s not so hard to do, right? In 2005, if you were the average CEO, you made 262 times what the average worker made, $41,861 anually.
Critics of CEO pay contend that the compensation committees of publicly traded companies too often fail to tie pay to performance.
CEOs make this kind of money because companies are willing to pay. Shareholders must believe they are worth the big bucks, otherwise they’d vote to change the Board of Directors, right? So this is just the free market at play… maybe.
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I guess the real question is do the shareholders really have the power to force the board to make changes? I’m not that knowledgeable of the inner workings of it but I’d have to say I’m pretty skeptical.