Musk sends executive pay into orbit

Discussion in 'Wall St. News' started by ajacobson, Jun 27, 2022.

  1. ajacobson

    ajacobson

    [​IMG]
    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.
     
    dealmaker likes this.
  2. VicBee

    VicBee

    Yup, and inflation certainly can't come as of result of that. Just the few $100 bills given to the rest of America.
     
  3. newwurldmn

    newwurldmn

    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).
     
  4. LuckyMac

    LuckyMac

    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
     
  5. 2rosy

    2rosy

    how does/can inflation come from this? inflation means the currency is inflated usually done by printing paper money thus devaluing the currency
     
    newwurldmn and nooby_mcnoob like this.
  6. VicBee

    VicBee

    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
     
  7. VicBee

    VicBee

  8. 2rosy

    2rosy

    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 o_O
     
  9. VicBee

    VicBee

    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?
     
  10. 2rosy

    2rosy

    it is simply supply and demand
     
    #10     Jun 30, 2022