Raising the pay roof.Aly Song/Reuters Musk sends executive pay into orbit In 2018, Elon Musk unveiled a groundbreaking compensation plan that was composed entirely of an enormous stock grant tied to Tesla’s performance. The plan linked his compensation to the future value of Tesla and the electric vehicle company’s ability to hit hugely ambitious targets for sales and operating profit. The gamble seems to have paid off: Musk has so far received shares for the award worth just over $60 billion. But it’s not only Musk that has profited: Compensation experts say they see the influence of Mr. Musk’s deal everywhere. Executives are earning record-breaking compensation figures, Peter Eavis of The Times writes. All of the 10 highest-paid executives in 2021 had compensation over $100 million, a first, according to a survey of 200 large companies by compensation consulting firm Equilar. Their average compensation was $330 million, the highest ever. The median chief executive made $32.1 million in 2021, up 27 percent from $25.3 million in 2020 and far higher than in prepandemic years.
Yup, and inflation certainly can't come as of result of that. Just the few $100 bills given to the rest of America.
inflation just come from a few hundred dollar bills given to rest of America. But more of it did. A ceo making 30mm: 1. Is paid mostly in stock, 2. Will likely maintain that stock and only spend a fraction of this excess earnings (maybe a new Ferrari or a vacation). The middle class will spend all of their excess cash and the total amount given to them is far greater than the total amount given to CEO’s (even if it’s 200mm people to 500).
Massive jump these things can't be sustainable long term. Its a recipe for disaster to have that much going out even if it is stock as that has to be realised and that could cause a massive crash if they wanted to taking it all out at once
how does/can inflation come from this? inflation means the currency is inflated usually done by printing paper money thus devaluing the currency
Inflation is a reaction to an unbalanced market, where demand is greater than supply. If the market cannot supply enough to meet demand, it simply increases cost of goods sold. With so much concentration of wealth in the world, suppliers have rushed to build jumbo yachts, million dollar cars and multi million dollar abodes. The effect? Next in line money wants a piece of the action, etc. following a trickle down "me too" theory. With supply bottlenecked, prices rise and eventually the avg Joe and Jane whose salary hasn't kept up can no longer afford their goods. At least that's how I understand it
no. you described supply and demand dynamics; IS-LM model. According to your definition, an elite trader buying the offer and moving the price of XYZ up just caused inflation
No, re-read. Inflation is not just an oversupply of liquidity, it's also a constraint on supply. Here's another example... Chinese executives and mid level government employees siphon off millions of $ from their exceedingly high pressure jobs in communist China. They launder their ill gotten rewards by buying properties anywhere anyone makes it easy for them, like anglo countries, Australia, Canada and America. $1M home? They pay $1.5M... cash. Is that simply supply and demand or, is this an inflation trigger?