> Management as a whole is usually way overpaid… <
Yep. In the old days a CEO made something like 40 times the salary of the average worker at his company. In 2022, Ford CEO Farley made $22,000,000. Using the 40 rule, each Ford employee should be making $550,000.
So either the Ford workers are greatly underpaid or the CEO is greatly overpaid. It’s the latter, of course.
Some argue that’s it’s just freedom in action. Ford can pay the CEO whatever they want. Well, sure. Then the union can ask for whatever it want.
Out of control greed is a terrible thing. Both the executives and the unions are infected by it, perhaps fatally.
It used to be stockholders and Board of Directors kept CEO salaries in line.
But as long as there are record profits and stock prices, they don’t care.
Is there a financial or moral basis for the 40x figure?