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   william.maggos (wjmaggos@liberal.city)'s status on Wednesday, 03-Apr-2024 05:45:50 JST william.maggos

   What do corporate board conversations about executive pay sound like? Do they really think that at the top they have to pay more to make the business run better, but that paying less makes perfect sense for all lower level employees? Or then what's with the lack of competition for the CEO jobs? #economics

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     :blobancap: :blobcattrans: :blobancap: :blobcattrans: :blobancap: :blobcattrans: (allison@hidamari.apartments)'s status on Wednesday, 03-Apr-2024 05:45:48 JST :blobancap: :blobcattrans: :blobancap: :blobcattrans: :blobancap: :blobcattrans:

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     @amerika @wjmaggos Or because they are perceived to.
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     ≠ (amerika@annihilation.social)'s status on Wednesday, 03-Apr-2024 05:45:49 JST ≠

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     @wjmaggos
     
     Mostly bidding on the people they need. Long story short, many needs and few really good candidates. Top CEOs get top money because they handle crises better.
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     ≠ (amerika@annihilation.social)'s status on Wednesday, 03-Apr-2024 06:54:50 JST ≠

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     @allison @wjmaggos
     
     This is true of all markets. The "informed consumer" is an approximation, and trends ruin everything.
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     :blobancap: :blobcattrans: :blobancap: :blobcattrans: :blobancap: :blobcattrans: (allison@hidamari.apartments)'s status on Wednesday, 03-Apr-2024 06:54:50 JST :blobancap: :blobcattrans: :blobancap: :blobcattrans: :blobancap: :blobcattrans:

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     @amerika @wjmaggos this is true, but there is a difference between making vaguely reasonable assumptions based on incomplete information and acting on faith or dogma, and many corporate boards brazenly do the latter for their decisions up to and including CEO appointments
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     ≠ (amerika@annihilation.social)'s status on Wednesday, 03-Apr-2024 06:56:59 JST ≠

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     @allison @wjmaggos
     
     ...adding to this, the big determiner is shareholders and speculators, whose "faith" (religious music goes HERE) in the stock determines its value.
     
     Back to the old principle, something is worth what someone is willing to pay for it.
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     NEETzsche (neetzsche@iddqd.social)'s status on Wednesday, 03-Apr-2024 07:11:12 JST NEETzsche

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     @allison @amerika @wjmaggos That's the thing, systems that are designed to be emergent like liberal capitalism are supposed to account for this kind of thing. It allows for outfits to succeed insofar as they make the the right choices, even if the logic behind those choices is spotty or if it's based on executives literally trying to intuit the best course of action. Conversely, outfits can fall if they make the wrong choices, and those choices being based on the most dutiful application of the most sophisticated "theory" will not have you. They literally called it a "correction" when big line goes down, because it means that the outfit (or the entire economy) is shitting itself and things are going awry for whatever reason.
     
     But the thing is, commies and true corpos hate this kind of thinking, because baked into it is the understanding that they could always be wrong, and that their degrees or their virtue signals will not save them. Commies do it by nationalizing everything, and corpos just make sure the money printer as the Federal Reserve keeps injecting more cash into their business checking. Both feel entitled to pick winners and losers, and of course they're winners.
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     ≠ (amerika@annihilation.social)'s status on Wednesday, 03-Apr-2024 07:23:41 JST ≠

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     • NEETzsche
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     @NEETzsche @allison @wjmaggos
     
     Economies tend to run like sine waves: up, then down, because people speculate, explore, create, and invest in bunches, then all the illusions die. Sort of like natural selection.
     
     Some economists I respect hold that competition is essential and frequent purges of older companies is necessary.
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     ≠ (amerika@annihilation.social)'s status on Monday, 08-Apr-2024 08:37:09 JST ≠

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     • Jeff C
     @wjmaggos @JeffC1956
     
     Through the power of the administrative state. The more laws, the more loopholes... and the more jobs created. The more subsidies, the same. It's counter-intuitive.
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     william.maggos (wjmaggos@liberal.city)'s status on Monday, 08-Apr-2024 08:37:10 JST william.maggos

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     • Jeff C
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     @amerika @JeffC1956

     this should be transparently bad market policy. how does it persist?

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     ≠ (amerika@annihilation.social)'s status on Monday, 08-Apr-2024 08:37:11 JST ≠

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     • Jeff C
     @wjmaggos @JeffC1956
     
     This is how the rich and powerful get rich and powerful: once they get into government, they can do favors for industry, and then take positions on various boards and rake in the dough.
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     william.maggos (wjmaggos@liberal.city)'s status on Monday, 08-Apr-2024 08:37:12 JST william.maggos

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     • Jeff C

     @JeffC1956

     I've heard that basically these people are all friends. They sit on multiple boards and go in and out of CEO positions. That there's basically no pressure to save money on this part of the business. Any of that true?

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     Jeff C (jeffc1956@mastodon.social)'s status on Monday, 08-Apr-2024 08:37:13 JST Jeff C

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     @wjmaggos they don't have conversations. They hire an executive HR consultant to recommend the pay, and then they rubber stamp it. My daughter used to be one such consultant.