As others pointed out, salary is only one part of executive packages.
Their CEO is not the only exorbitantly paid executive.
Even if that was so, cumulative effects across society from this standardized system of disproportionate remuneration can be massive. Every major firm, or nearly every major firm, pays into this system - every firm that goes under on a narrow margin is killed in part because the grain supplier must charge an extra 3% (using a random-if-high number for demonstration) over the rest of their costs and profits calculations for the exorbitant wage of their execs - that price is factored into the flour supplier’s cost - who also then must charge an extra 3% on top of that for their execs- that price is factored into the bread supplier’s cost - likewise, who must charge an extra 3% for THEIR execs - and that price is factored into the local grocery store, who, again, must both factor the raised costs caused by paying all the previous companies’ execs, and pay their own execs the remuneration they are accustomed to. The end result is a massive burden on the consumer that many do not fully understand is inherent to the system.
Even if we exclude cumulative effects, a 20 cent raise is 400$ per year per person.
It’s the problem of being infested with parasites. Each individual parasite can complain that it barely takes any blood to keep them fat and bloated, but once all of the parasites are added up, you’re left with a sickly society.
As others pointed out, salary is only one part of executive packages.
Their CEO is not the only exorbitantly paid executive.
Even if that was so, cumulative effects across society from this standardized system of disproportionate remuneration can be massive. Every major firm, or nearly every major firm, pays into this system - every firm that goes under on a narrow margin is killed in part because the grain supplier must charge an extra 3% (using a random-if-high number for demonstration) over the rest of their costs and profits calculations for the exorbitant wage of their execs - that price is factored into the flour supplier’s cost - who also then must charge an extra 3% on top of that for their execs- that price is factored into the bread supplier’s cost - likewise, who must charge an extra 3% for THEIR execs - and that price is factored into the local grocery store, who, again, must both factor the raised costs caused by paying all the previous companies’ execs, and pay their own execs the remuneration they are accustomed to. The end result is a massive burden on the consumer that many do not fully understand is inherent to the system.
Even if we exclude cumulative effects, a 20 cent raise is 400$ per year per person.
It’s the problem of being infested with parasites. Each individual parasite can complain that it barely takes any blood to keep them fat and bloated, but once all of the parasites are added up, you’re left with a sickly society.