I defy you to tell me what part of the below is incorrect.
I am 100% correct, and you are 100% incorrect.
Stockholders voluntarily transfer their property to the corporation. Stockholders KNOW that some of their property will make its way into the pockets of CEOs. They, knowing this, voluntarily transfer their private property to CEOs. When I buy stocks (frequently) I know the CEO makes a ton of cash, but I voluntarily transfer my wealth to him anyway.
Wait a minute. I’m sorry. You mean the part where I said “it’s not our money.”
So, we are BOTH correct. When I said it’s not our money, I was referring to cry babies on the sidelines moaning about CEO pay, people who don’t own stock in the company. I was not, of course, referring to stockholders, as my post makes abundantly clear when I talk about stockholders giving THEIR OWN money to CEOs.
Sorry for the confusion.
1. Those crybabies have no business complaining.
2. CEO salaries come from voluntarily transferred wealth.
If you are only referring to the purchase of an IPO - a one-time event for that traunch of capital - then you would be correct. Those funds are transferred to the corporation and added as an asset.
If you are referring to the stocks you buy or sell on exchanges, then that is incorrect. Those funds are transferred to the seller of the privately held shares.
Stockholders KNOW that some of their property will make its way into the pockets of CEOs.
Incorrect. The working capital of a corporation is different than the allotment of the income and subsequent expenses of a corporation. The CEO does not skim off part of your capital. His or her compensation comes from the cash flow of a corporation and is decided by the crony board.
They, knowing this, voluntarily transfer their private property to CEOs.
Wrong premise leads to this bad conclusion. This is a form of logical fallacy. The working capital does not go to the CEO. Ever.
When I buy stocks (frequently) I know the CEO makes a ton of cash, but I voluntarily transfer my wealth to him anyway.
It is true that a shareholder should know the compensation of the CEO at the time of purchase (not transfer). It is also true that whoever owns the shares owns the company and has a say in compensation through the choice of board members who decide the compensation.Final bad conclusion. You may buy many stocks, which is great. I did a bit of that too - billions. Your understanding is not clear. Fortunately, you do not need to understand what is happening to buy or sell securities.
Finally, your post begs the question as to what is a reasonable amount of compensation to a CEO. It also ignores the issue of who decides how much profit should compensate the CEO vs. being distributed to stock owners.