a reply to: Isurrender73
I was a business consultant to millionaires who would testify on my behalf that I know how to run a business better than 90% of those who
actually run businesses. So your assumptions of me have no merrit.
If you are so fantastic at running a business, why aren't you?
Oh, maybe here's why:
I actually think a CEO that can't do the job of his employees is out of touch with them and has no right to his
The person overseeing a machine shop should have machinists experience. The person who runs a cleaning service should understand the problems with a
cleaning service. The contractor overseeing construction of a building should know a lot about building. In those respects I agree with you.
But when you get a company large enough, like say a company like Toshiba that makes electronic components, computers, and several other items... or
maybe someone like GE that makes everything from light bulbs to kitchen appliances to radios... then you cannot find a person who knows everything
about the business! The human brain simply cannot hold all that information. So you have a chain of command... a CEO who knows business, advised and
supported by Vice Presidents of various departments, who are advised and supported by Supervisors of various sections of their departments, all the
way down to the dude on the floor who is in charge of a single shift in one room of one plant.
As someone with that godlike knowledge of all things business, I would have thought you already understood that. Look up "chain of command."
The motivator and marketer is not 100 times more valuable to an organisation than the actuall shipbuilders.
Agreed to a point. Motivation and marketing are not more important than shipbuilding. But how many CEOs are in a company? One, by definition. How many
line employees are in a company of the size we are discussing? Thousands. So if a company has, say, 7000 line employees and one CEO that makes 350
times the pay of the average employee, then CEO management is costing 0.05% as much as the actual manufacturing. Manufacturing is 20 times more
expensive to the company, and thus 20 times more valuable.
As someone with godlike knowledge of all things business, I would have thought you already understood that. Look up "multiplication."
People like to consider themselves superior and justify a lifestyle that is 100 times more lucrative than the worker.
Everyone likes to consider themselves superior and justify a lifestyle that is 100 times more lucrative than than others.
Those who own businesses and run businesses have a skillset. Those who are employees have a skillset. No business can run without both
skillsets. Why is one skillset so disproportionately compensated?
Now you're confusing me. What businesses of what size are we discussing? The OP is about a plan that affects corporations of over $1 billion in sales
(or maybe assets? I don't think Warren even has that figured out yet). No business of that size is run by Cousin Bob out of a small office. The CEO
doesn't even run the company... the Board of Directors do, by hiring CEOs to do the day-to-day oversight. If a CEO makes a mistake, it could cost the
company everything... if a line worker makes a mistake, it can cost a little to repair, but not bankrupt the company. the more expensive mistakes are,
the more a good, dependable employee is worth. As someone with godlike knowledge of all things business, I would have thought you already understood
that. Look up "risk vs. reward."
As to why one skillset is more expensive? Because it is rarer. Why is gold more expensive than tin? Why are diamonds more expensive than glass? Why is
a Rolls Royce Silver Shadow more expensive than a Ford Fiesta? It's called supply and demand. As someone with godlike knowledge of all things
business, I would have thought you already understood that. Look up "supply and demand."