A few years ago, a few of us decided if we could see how this CEOs could justify these huge salaries.
CEOs are all workaholics, not a lot of personality, difficult to work with and expect those around them to be workaholics too. The CEOs where I worked used work 16 hour days during the week, most Saturdays & Sundays and rarely took annual leave.
A salaried worker would be getting paid 8 hours at normal, 4 hours time & a half and 4 hours double time Monday to Friday. Hence get paid 22 hours for the day or 110 hours per week for at least 50 weeks of the year.
Eight hours on Saturday at double time and 8 hours on Sunday at double time & a half makes another 36 hours. All up thats 146 hours per week. They are also on-call 24/7 given that companies operate internationally. Having conference calls anytime through the night is normal.
Skilled, highly experienced IT, Finance, HR, Engineering people command a lot of money. Most of these CEOs are experienced it all disciplines or can summon someone with these skills. People with these skills can command in excess of $200 / hour.
50 weeks x 146 hours x $200 / hour is close to $1.5 million.
So how do we get from $1.5 million to $7.5 million and beyond for a CEO of a publicly listed company (ASX)? With the above logic, the poorest CEO is getting at least $1,000 / hour. Are they really good shareholder value?
I wish I had an answer, the best I can come up with is leeches on society who have their best interests in their hip pockets! Just like our Politicians!
When I started out on my own, I earned $00.00 for the first two years. My wife kept me. Third year $8341.00
Every cent went into growing my company.
The pro's say pay yourself first. I employed two young men both with young families to feed. Together we grew the business. We rotated weekends and paid them bonuses. Family came first.
I employed 5 more people after 5 years. If they talked porkies/BS to myself, it was out the door. I told them from day one If you have issues, tell me.If you have a family emergencies. ring CIC2 /CIC3. I paid them bonuses every year as a % of turnover. Six weeks leave + bonus days off. Then their spouses stated working with us. we grew as family.
After 38 years of hard work we have a staff of 41. As CEO I earned my Retirement.
If you look after your staff, your staff will look after you. My team have taken over, in a progressive buyout. When C1 or C2 take a break. I stand in for that period. A win win all round.
Let's not forget the "BONUS"' for in most cases the CEO receive their agreed bonus once they have achieved their K.P.I;s Key indication points ( I think????)
I would settle just for their bonuses.
Would be good if some of the huge salary was returned to share holders, or at least reinvested to grow the company.
But, hey!!! we still won't our fully franked dividends. I am a greedy B.
KPI. Is Key performance indicator. The indicator may mean a salesperson needs to sell so many units on a set time or the company needs to make a certain profit before a bonus is paid.
KPI. Is Key performance indicator. The indicator may mean a salesperson needs to sell so many units on a set time or the company needs to make a certain profit before a bonus is paid.
Thanks Dazza, Husesad a bit of a mental blockage. OTD it is called.
I think that the bonus should go the the employees and the customers, with the CEO receiving the same bonus as them. After all they made the highest contribution.
