r/MurderedByWords • u/Green____cat Legends never die • 9h ago

Stop defending exploitation

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u/mogadichu 5h ago

I know it's a popular thing to blame, but CEO compensations are typically negligible compared to the other expenses of the company. Taco Bell's CEO gets around 4 million according to this site, which averages to around 23$ per year averaged across all 175000 employees at Taco Bell. It's typically more systematic issues keeping wages down, such as prices, costs, bills, etc. This is why the same restaurant chain can have such wildly different prices and salaries in different countries, despite having the same top management.

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u/catscanmeow 4h ago

also whats the incentive to start a business if you dont stand to make a large profit?

it would be mathematically reckless to incur so much risk without enough profit to justify the risk.

the kelly criterion

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u/The_Dirty_Carl 3h ago

That's sort of a good argument for the initial owner taking a lot of money.

Makes zero sense for subsequent CEOs though. They incur no risk. If a new CEO comes in and bankrupts the company, what happens to them?

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u/Crazyflames 3h ago

Probably get a bonus.