[biomene]

> Since the CEO seems to be paying well above the going market rate, I doubt that this is sustainable for the long run.

I doubt it too. But it's not completely impossible: if a doubling of your employees salary means they increase their productivity three-fold, it might even increase your total profits (of course this depends on what the surplus rate was to begin with). The point is, since profits come from the surplus rate, which depends on productivity, increased salaries can in some cases lead to higher profits.