A CEO that would be locked in the looney bin here

[erictheblue]

It isn't just this guy, although the CEO's in this story also have stock options. But it's still better than CEOs that get millions-dollar salaries and stock options.

[armandtanzarian]

Bit outdated, since I believe the ratio in the US has since peaked at 400:1.

As mentioned the standard model for CEO pay heavily favors stock options. The absolute lowest I've seen was a 1:1:2 distribution for salary:benefits:stock options. As mentioned in previous Wall Street threads stock options make up the bulk of annual bonuses, which in turn make up the bulk of any CEO's earning. The usual argument is that stock options give the CEO an incentive to increase shareholder value; i.e. hike the stock price, but since so much stock is given to begin with the CEO still makes millions unless the company goes Chapter 11. In any case its easy for the company because they don't have to search for the liquid cash you need to pay one guy millions in compensation.

(Incidentally, this really works best with high ranking officers whose actions tangibly affect the company's stock price. My last company gave me stock options as part of a regular bonus last year, but I can't really affect the stock price. On paper its worth 8 months my salary, but it promptly dropped beyond the strike price immediately after issuance. I never exercised it.)

Since one CEO's pay doesn't mean any statistics-wise, here's a comparison of CEO pay in worldwide banks in 2009.

Forget comparing USA to China's gigantic state-owned banks; Compare the CEO of HSBC to the CEO of JP Morgan. Both are gigantic financial institutions equally guilty in the global recession, its the best apples-to-apples comparison of the ridiculous pay of America.

[e13]

I would like to point out that Germany is currently the most productive country in the European Union,

It isn't just this guy, although the CEO's in this story also have stock options. But it's still better than CEOs that get millions-dollar salaries and stock options.

Personally, I'm OK with little perks like that. It's when you make a shit ton already, and on top of it, you need an expense account, a private, company owned jet, stock options, a yearly bonus just for showing up to work, etc...

[Sleepy]

And this is a major reason why Japanese production is the most efficient. They have lean production using methods like collegial worker-management relations, long term associations with suppliers, and general teamwork. A good example is the auto industry after the oil crisis here. The percent of Japanese cars on the road increased dramatically because the Japanese manufactured them cheaper, using the aforementioned methods.

[Keiro Dreamwalker]

... I don't get THAT much as a CEO. Granted, my company's pretty goddamn tiny. <_<;

[Lt. Fred]

Japanese CEOs are also better- much better- than Americans, probably because they are paid less. Their quality of work is far superior, and they're even more productive. They're much less driven by short-term gain, hence the success of Japanese car companies (investing in R and D).

If American CEOs were forced to compete with foreigners, in the same way that a steelworker is forced to compete with foreigners, not one of them would be employed. They're all worthless.

I would like to point out that Germany is currently the most productive country in the European Union

Germany's been able to exploit the rest of Europe through it's aggressive trade policy, sure.

And then blame them for the predicted, inevitable consequences of Germany's own actions, of course.

[TheL]

And this is a major reason why Japanese production is the most efficient. They have lean production using methods like collegial worker-management relations, long term associations with suppliers, and general teamwork. A good example is the auto industry after the oil crisis here. The percent of Japanese cars on the road increased dramatically because the Japanese manufactured them cheaper, using the aforementioned methods.

Also, isn't there a law setting a maximum worker: CEO pay ratio over there?

[Thejebusfire]

I'd work for him.

[Witchyjoshy]

I've got sentiment in my eye ;_;