It's funny, we always talk about compensating leaders for the value they provide to the company. Yet when it comes to non-leaders, it's transforms into a question of "value relative to their current/recent income".
> It's funny, we always talk about compensating leaders for the value they provide to the company. Yet when it comes to non-leaders, it's transforms into a question of "value relative to their current/recent income".
That's maybe true for founders, but not really for hired executives:
> One major consideration that goes into how much a CEO should be paid is what other companies are paying. Compensation committees benchmark CEO pay against a self-selected peer group -- often 12 to 20 companies that may be of similar size and complexity, and have similar business models, according to Robin Ferracone, CEO of Farient Advisors, an executive compensation consulting firm.
That's maybe true for founders, but not really for hired executives:
> One major consideration that goes into how much a CEO should be paid is what other companies are paying. Compensation committees benchmark CEO pay against a self-selected peer group -- often 12 to 20 companies that may be of similar size and complexity, and have similar business models, according to Robin Ferracone, CEO of Farient Advisors, an executive compensation consulting firm.
https://www.cnn.com/2019/10/24/success/ceo-pay-packages/inde...