(no subject)

[unnamed525.livejournal.com]

Comments

[yes-justice.livejournal.com]

Jeez.

[hardblue.livejournal.com]

But he has a very special skill set and is probably still undervalued, whereas the workers are more like pond scum and are overvalued with the minimum wage.

[badlydrawnjeff.livejournal.com]

If the CEO of McDonald's is really only making $14m, yes, absolutely.

[fizzyland.livejournal.com]

CEOs can never be paid too much and workers never too little, amiright?

[badlydrawnjeff.livejournal.com]

No, you're not.

[yelena-r0ssini.livejournal.com]

Okay, where's the limit?

[fizzyland.livejournal.com]

You can say that but it's somewhat undermined by your cheerleading for CEO pay and removing the minimum wage.

[badlydrawnjeff.livejournal.com]

Because extremes are the only things we operate in?

[fizzyland.livejournal.com]

Well, minimum wage is by definition, one of the extremes. Referring to CEO compensation as "only" $14 million annually would be the other extreme.

[badlydrawnjeff.livejournal.com]

What's extreme about it?

[fizzyland.livejournal.com]

Where's the value creation?
McDonald's CEOs Get Big Pay Increases, Despite Falling Sales (http://www.huffingtonpost.com/2013/04/12/mcdonalds-ceo-pay_n_3070833.html)

[farchivist.livejournal.com]

There's really no value creation there anymore and hasn't been since the 1970s. Frankly, CEOs are mostly in the business of cheating their stockholders for the cash (http://www.thefiscaltimes.com/Articles/2013/08/28/Some-CEOs-Are-Still-Cashing-In-at-Our-Expense.aspx#page1), but this is due to the current beliefs of the financial sector (http://www.forbes.com/sites/jakezamansky/2013/08/13/the-song-remains-the-same-on-wall-street-greed-is-good/) and how corporate culture has been modified over the last 30 years due to the 'profit maximization' theory. (http://www.forbes.com/sites/stevedenning/2011/11/28/maximizing-shareholder-value-the-dumbest-idea-in-the-world/).

[peristaltor.livejournal.com]

Yep. Company boards who challenge CEO pay are pretty rare these days. There is simply no incentive to do so.

[enders-shadow.livejournal.com]

Who the hell are you to determine the CEO's worth? Do you have some secret way of telling what a particular individuals "market value" is? Cause if not, you're talking out your ass.

[dwer.livejournal.com]

well, having CEO after their name clearly makes them valuable. I mean, look at those letters!

[oslo.livejournal.com]

When talking about teacher's salaries, Jeff believes that the best way to determine the "value" of their labor is to see where an "open market" would price their labor. By "open market," of course, he means, "a market dominated by large public employers, where employees have zero leverage or bargaining power." He's otherwise agnostic about the "value" of teacher's labor.

But when it comes to CEOs, who can typically negotiate on a more-or-less arm's length basis with potential employers, apparently the "price" agreed to as the consequence of a bona fide negotiation between the executive and the company's board is no longer an adequate proxy for value. When speaking of CEOs, now, true value means something other than "what the open market says it is" - apparently whatever Jeff wants it to be.

Jeff's compulsive need to be contrary all the time tends to get him into trouble, if you try to make all of his "deep thinking" cohere.

[hardblue.livejournal.com]

The food business does run on a pretty slim profit margin, no? But I suppose there must be the multi-million dollar bonuses to boot.

[badlydrawnjeff.livejournal.com]

I assume much of it has to do with how the franchising works in regards to profit lines. I assume he gets some stock options as well.

[vulturoso.livejournal.com]

"Only making $14 million".

I can't.

[oslo.livejournal.com]

Having gone to a conservative law school, I became familiar with one of the trendy things to say back in the day: chief executives are generally undercompensated for the amount of personal risk they take on, their average lengths of tenure, etc. Many of these same professors believed that insider trading should be fully legal and antitrust law was a total scam. So, yep.

[unnamed525.livejournal.com]

What personal risk?

[oslo.livejournal.com]

They get sued all the time.

[oslo.livejournal.com]

What - there isn't an "open market" for CEOs?

[brother-dour.livejournal.com]

Zing!

[fizzyland.livejournal.com]

I'm sure he's responsible for creating 3x more... something to deserve that, right?

Or maybe it's just the savings from not giving me ketchup packets in the drive through even though I ordered fries.

[telemann.livejournal.com]

[fizzyland.livejournal.com]

As long as it isn't Taco Bell ;)

[telemann.livejournal.com]

Taco Town! (http://www.nbc.com/saturday-night-live/video/taco-town/n11981/)

[dexeron.livejournal.com]

http://survivingtheworld.net/StudentPresentation13.html

[fizzyland.livejournal.com]

That was funny - I especially liked the last photo.

[peristaltor.livejournal.com]

Don't forget a beverage (http://society6.com/BeastWreck/CTHUL-AID_Print)!

[rowsdowerisms.livejournal.com]

Ronald McDonald is a juggalo?

[op-tech-glitch.livejournal.com]

I've found this worth reposting whenever the specter of McD's raises its head. Some girl in the Philippines was responsible for this; it's from quite a few years back, but it was fall-down hilarious when it was still current.

miss_mcdonald