this post was submitted on 24 May 2025
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I see. So you are saying that every CEO is paid what they are worth?
By definition yes. Their worth is determined by negotiation between the company and the employee.
And there are no other external factors that could possibly influence their compensation besides their objective "worth" to the hiring organization?
Edit: To clarify, might personal bias from the employer lead to a higher compensation? If two CEOs are interviewed and one went to the same college as several members of the board, or if several members of the board know one personally, but the known CEO isn't as accomplished... is it possible that the CEO benefitting from bias is going be hired? Will the benefitting CEO receive a lower compensation, higher compensation, or the same compensation?
Is it possible for a CEO to lie about their ability and get hired under false pretenses? Is it possible for a CEO to be hired for political or "public image" reasons rather than talent/productivity reasons? Are these reflected in their compensation?