I have recently decided to put more images in my posts because I figure that people are more attracted to pretty pictures than good text on Tumblr. So here you go, a pretty picture to go along with the real post.
Although Barclays is in the picture, I am not directly addressing that bank when I say that executives are overpaid and the rules of supply and demand don’t work for CEOs.
I was reading the Economist recently and an article with a similar subject came into mind and struck up some memories of arguments with regards to other companies and their CEOs…
If a large company like General Electric were to find itself in a position where it needs a new CEO, it would normally end up paying the new executive several millions of dollars for an annual salary. Why? Their argument is something like this…
“IF WE DON’T PAY THESE PEOPLE MILLIONS OF DOLLARS EVERY YEAR, THEY MIGHT WANT TO GO WORK FOR OTHER COMPANIES THAT WILL PAY MORE THAN US.”
*laughing in the background*
Really huh? There is NOBODY in America who is well educated enough to run a company that is willing to work for less than 3 million dollars? I don’t think this is the truth and I honestly cannot believe that these executives are worth the money that they are paid considering how often we have seen major financial screw ups within the past decade.
It’s either greed or stupidity or both.