Economists disagree about whether huge CEO pay packages reflect a competitive market for scarce executive talent or extraction of rents by bosses. Elon Musk’s latest pay bonanza supports the second, more cynical, view
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Linking his pay to the stock valuation has had predictable results. He pumps the stock over and over and gets paid. No obligation to actually show up to work. It's value is completely unmoored from reality and retail investors and index fund holders will eventually be caught holding the bag
sep 1, 2025, 3:34 am • 2 0 • view
There is no data to back up the idea that CEO pay is a reflection of performance. This was shown with numbers for multiple companies over a decade ago by David Graeber
sep 1, 2025, 3:13 am • 3 1 • view
Bruce Bueno de Mesquita et al., in The Dictator's Handbook, explained that the more a company is in trouble, the higher board and CEO packages are: it shows an effort meant to buy a coalition in order to stay at the helm.
sep 1, 2025, 6:43 am • 1 0 • view
"scarce" please
sep 1, 2025, 4:10 am • 0 0 • view