submitted 2 years ago* (last edited 2 years ago) by [M] to c/news@lemmy.world
 

The historic UAW strike puts an exclamation point on more than a decade of efforts by Washington lawmakers to narrow the pay gap between top executives and workers.

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[–] 4 points 2 years ago (1 child)

If the people paying did not believe they were getting their money’s worth, they would stop paying that much.

No they wouldn't. They're the same people as get paid that much elsewhere. They have no incentive to lower the bar.

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  • [–] 1 point 2 years ago (1 child)

    You're mixing up who is offering what

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  • [–] 3 points 2 years ago (1 child)

    No, I'm not. Who do you imagine sets CEO pay?

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  • [–] 1 point 2 years ago (1 child)

    Competing firms and to a lesser extent the CEOs themselves, all have input. It's a market.

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  • [–] 0 points 2 years ago (1 child)

    It's nothing like a market. Who do you imagine the individuals are who set the CEOs pay, and how do you think their pay is decided?

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  • [–] 0 points 2 years ago* (1 child)

    Generally, but not always, the board will set a price range for CEOS. In smaller firms, the C-suite or President will, in some rarer cases the owner will have sole vote.

    You seem to think CEOs dictate their own wages, which makes no sense. That's not how getting a job works.

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  • [–] 0 points 2 years ago

    Exactly

    Furthermore, the boards themselves typically include fellow C-Suite executives, leading to elite back-scratching as well as a never-ending upward spiral of executive compensation as companies compare their CEO salaries to others.

    They're not incentivised to get the best value for money. They're setting the benchmarks by which their own pay is decided.

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