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by brianwawok 1206 days ago
People really hate that. Also the secretary is not a fan that their CEO does indeed provide 4000x the value.
1 comments

CEO is in the unique position of being capable of providing 4000X the value, due to being a force multiplier on the entire company (It’s the job they hold, not skill, that makes it impossible for a random secretary to have as much value to a company). On one hand, this means it is indeed worth paying a lot of money to get the best CEO you can, as small differences in skill have outsized influences on the end result. On the other hand, even the CEOs who are of neutral or negative value compared to someone you could pay 10X less still get paid 4000X more than the secretary.

Anyway, long way of saying than general salaries are a race to paying as low an amount as you can to get someone of the needed skill, while CEO salaries are about paying more than strictly necessary due to the effect even a small difference has from your biggest productivity multiplier. And given that most people will never have the opportunity to enter a role where their pay starts being calculated that way, it’s unsurprising they find it unfair (even if it’s logical).