Quote from: PrintMule on August 13, 2013, 10:15:37 AM

Quote from: Rassah on August 13, 2013, 04:34:46 AM

People who can do CEO type work are very rare and highly sought after, while people who can do low-level jobs are everywhere, especially now that we can hire labor all over the world. It's just supply/demand. Blame low wages on people willing to work for cheaper than you.

Exactly. If a company/board of directors are willing to pay that much to a certain individual, then maybe he is worth it? Although a thing I don't understand is - how did it get that way?

Your average joe works for 10$/hour, then some poor chap comes along and is willing to work for 2$/hour. Joe is fired. I get that. But why on the other end of that spectrum, salaries are so big. Why doesn't some poor chap come along to work as CEO for less?

Also how much could you possibly want? If they offer you a job for 2 mil $ a year, could you keep a straight face and say: "my services require better than that, make it 3.5 mil" ? And if they disagree - screw them, and those 2 mil, right?

That's not how it works. Joe comes along and says he'll work for 10/hour. He's hired. Bob comes around and says he'll do it for 9. Bob replaces Joe. Someone comes along and says they'll do it for 8, replacing Bob It goes down until the wage is at the lowest anyone will pay. This is assuming everyone is equally qualified, which is pretty much true for low wage jobs.

The same happens with CEOs. Just add 6 zeros. Keep in mind however that most people are not hired immediately for a CEO position... They've worked their way up, so that's why their salary is so big. In addition, their workload is more specific and intense. People would like to paint CEOs as having an easy job- they don't. Anyone can work at McDonald's, so there's a low wage. Very few people can be a successful CEO. No one is going to be a CEO for $10 an hour, because it takes many years of working their way up to even be considered for the position. Working that cheap makes no sense. The kind of person who would take a million dollar job and get paid 10 an hour is not smart enough to be a successful business owner.

Also, keep in mind, a CEO might earn 2 million a year, but if he rakes in 50 million a year for the company it's a worthy investment.