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Comment on CEO pay has skyrocketed 1,460% since 1978

The CEO is the link between the company and the shareholders.

They get paid by the shareholders to extract as much value as they can from the company to the shareholders.

On the other hand, if the company needs more investment, the CEO is the one who has to attract that investment, too. Otherwise the company will stall or go bankrupt.

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m_r_butts@kbin.social ⁨1⁩ ⁨year⁩ ago
If you can't keep your business afloat on its own, if you require injections of cash from investors to avoid bankruptcy, that business should fail.

I'm absolutely sick to death of hearing about "a responsibility to the shareholders", used as it is to justify all kinds of immorality, exploitation, and predation.

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- Ethalis@jlai.lu ⁨1⁩ ⁨year⁩ ago
  A company that makes a 0$ profit and 0$ loss should be considered a successful one. Such a company would manage to pay all its costs (including wages, r&d, etc.) and function at peak efficiency.
  
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  - captainlezbian@lemmy.world ⁨1⁩ ⁨year⁩ ago
    I disagree. Some profit is good. It allows you to keep a coffer so you can keep afloat in bad years, as well as to buy back stocks for the employees. Once employee owned any profit can be voted on to either be added to budgets or distributed out amongst the employees.
    
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- Gork@lemm.ee ⁨1⁩ ⁨year⁩ ago
  Year over year growth is completely unsustainable. They should be content with making healthy profits in good times, and making any profit at all during times of recession.
  
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- Showroom7561@lemmy.ca ⁨1⁩ ⁨year⁩ ago
  
  If you can’t keep your business afloat on its own, if you require injections of cash from investors to avoid bankruptcy, that business should fail. And there’s nothing wrong with a business stalling, in my view. There should be limits to growth.
  
  This is the right answer.
  
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- onlyfandom@lemmynsfw.com ⁨1⁩ ⁨year⁩ ago
  In the US there’s a legal obligation to the shareholders, it’s not just as simple as a sick owner culture trumpeting platitudes. To fix this problem we need to address both the culture and the legal frameworks: …harvard.edu/…/towards-accountable-capitalism-rem…
  
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- SCB@lemmy.world ⁨1⁩ ⁨year⁩ ago
  Investors are primarily for M&A when brought on late.
  
  Investors brought in early still deserve a day, because it is partially their company.
  
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