Mattu's Tax Loss Picks

[Bird of Prey]

An awful lot of good points in there. However, your postulation that $60K might be a "good living" requires just a wee bit of education on the expenses associated with the expected "lifestyle" of a CEO.
First, I agree that there are too many execs that are way overpaid. and I agree that too many of them are running companies into the ground. But, a great deal is expected of a CEO of a public corporation, after all how would it look if the top man in the company pulled up in a Rambler?
So the Exec is expected to drive something stylish and befitting his position, It must also be a new car typically, Lease prices on a high end Cadillac, BMW, Mercedes, Lexus etc. would typically consume 20% or more of an execs "salary" were it "capped" at $60K. Additionally, the Exec is expected to have a home suitable for entertaining potential client and investors. A 3/2 in the burbs is not likely to encourage an Investor to drop $2 mil on the company any time soon, nor is it likely to inspire confidence in a client considering shifting a million dollars of PO's to the Company.
It is also expected that the CEO will "Wine and Dine" prospective clients and investors. I don't think he'll get far offering a McDonald's happy meal.
Lastly, In order to show stability, most CEO's are expected to be married. When you take into account all of the "extras" the CEO's Spouse is expected to tolerate and the "compensation" she often demands for doing so...this expense can easily top all the others combined.

Now there is the option of having the company cover all of these "expenses", but that still leaves the company paying a pretty big bill. And don't forget the CEO wants to actually come out ahead in the deal too, you know, for the time when he can no longer function as a CEO.

Your original supposition about Baseball players applies equally well to this situation. The Company will decide what the CEO is worth. Those companies that make good decisions in this regard will prosper, those that pay more than they get in return, won't.
BTW, when doing my due diligence, the CEO's salary is an important consideration. if it is too large IMO, I turn and run because it's clear that management are idiots.

And there will always be CEO's willing to "take" whatever a foolish company is willing to "give" them.

No matter what. You can't regulate stupidity.

The Bird of Prey
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