Why do CEO's get paid the most?, they are not the smartest.
Take every company in the world, who gets paid the most ?.
It's the CEO.
Who studied a business degree.
And not the engineers who studied a much harder degree, and who actually develop the products of the company in the R&D department.
The engineers toil away at the R&D labs trying to come up with new products while the CEO is at his yacht smoking cigars with the other CEO's.
And yet the CEO get paid 10 times more than the engineers.
It's the CEO.
Who studied a business degree.
And not the engineers who studied a much harder degree, and who actually develop the products of the company in the R&D department.
The engineers toil away at the R&D labs trying to come up with new products while the CEO is at his yacht smoking cigars with the other CEO's.
And yet the CEO get paid 10 times more than the engineers.
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Original post by Presetek
Take every company in the world, who gets paid the most ?.
It's the CEO.
Who studied a business degree.
And not the engineers who studied a much harder degree, and who actually develop the products of the company in the R&D department.
The engineers toil away at the R&D labs trying to come up with new products while the CEO is at his yacht smoking cigars with the other CEO's.
And yet the CEO get paid 10 times more than the engineers.
It's the CEO.
Who studied a business degree.
And not the engineers who studied a much harder degree, and who actually develop the products of the company in the R&D department.
The engineers toil away at the R&D labs trying to come up with new products while the CEO is at his yacht smoking cigars with the other CEO's.
And yet the CEO get paid 10 times more than the engineers.
They don't necessarily get paid the most - in some jobs with high bonuses or sales commissions "ordinary" staff can earn more than the CEO.
Also at some companies the CEO (often also the founder of the company) might not take a salary at all - e.g. Larry Page at Google, and Steve Jobs at Apple. They have their shareholdings though...
Unfortunately pay is not determined by how hard you work or what degree you studied.
To answer your question: GIYF
https://www.google.co.uk/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=why%20do%20ceos%20make%20so%20much
To answer your question: GIYF
https://www.google.co.uk/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=why%20do%20ceos%20make%20so%20much
Original post by Presetek
It's not fair.
The engineers are the ones who should be paid the most, as they are the ones who actually invent and develop the company's products.
The engineers are the ones who should be paid the most, as they are the ones who actually invent and develop the company's products.
Because they were smart enough to get themselves in position to become CEO as mentiined they had the business acument to start the company or get hired. The engineers dont have those skills. Business is about more than inventing.
Original post by Presetek
It's not fair.
The engineers are the ones who should be paid the most, as they are the ones who actually invent and develop the company's products.
The engineers are the ones who should be paid the most, as they are the ones who actually invent and develop the company's products.
Larry Page's degree was Computer Engineering.
Tim Cook, current Apple CEO, has a degree in Industrial Engineering
CEO of Microsoft : Electrical Engineering
Jeff Bezos, Amazon : Electrical Engineering & CompSci
CEO of Exon (largest oil company in the world) : BSc Civil Engineering
etc etc
(edited 7 years ago)
Ahh I remember when I discovered this early into my first job. I knew about it before, but it really hits you in the workplace. Engineers are often treated as oompa loompa type characters who produce the chocolate that the rest of the company runs on. The explanation is essentially a combination of psychology/history/the human condition. Engineers who are good at what they do either form their own companies or move to a country which pays them alot more. The UK's attitude towards engineers continues to cause a Brain Drain (https://en.wikipedia.org/wiki/Human_capital_flight) to this day.
Being an engineer does have some immediate benefits though, if you are willing to put in the time, many companies make the catastrophic mistake of delegating a large project to an individual engineer or small team. Over time this gives the individual engineer immense power, even threatening to leave once the project is near completion can cause a salary to triple, since the engineer worked on the project mostly in isolation, it would cost the company tremendously more to carry on without them.
This is very common in the software industry, although companies do now sue if there's clear evidence of something designed to fail, like a logic bomb...
Being an engineer does have some immediate benefits though, if you are willing to put in the time, many companies make the catastrophic mistake of delegating a large project to an individual engineer or small team. Over time this gives the individual engineer immense power, even threatening to leave once the project is near completion can cause a salary to triple, since the engineer worked on the project mostly in isolation, it would cost the company tremendously more to carry on without them.
This is very common in the software industry, although companies do now sue if there's clear evidence of something designed to fail, like a logic bomb...
Original post by UWS
You must be a STEM student, right?
Wannabe stem.
Actual stem students wouldnt ask such a naive question
Original post by jneill
Larry Page's degree was Computer Engineering.
Tim Cook, current Apple CEO, has a degree in Industrial Engineering
CEO of Microsoft : Electrical Engineering
Jeff Bezos, Amazon : Electrical Engineering & CompSci
CEO of Exon (largest oil company in the world) : BSc Civil Engineering
etc etc
Tim Cook, current Apple CEO, has a degree in Industrial Engineering
CEO of Microsoft : Electrical Engineering
Jeff Bezos, Amazon : Electrical Engineering & CompSci
CEO of Exon (largest oil company in the world) : BSc Civil Engineering
etc etc
That's 5 companies.
If you take the 1000 largest companies in the world I am sure 90% of the CEO's have a business degree.
Original post by Presetek
It's not fair.
The engineers are the ones who should be paid the most, as they are the ones who actually invent and develop the company's products.
The engineers are the ones who should be paid the most, as they are the ones who actually invent and develop the company's products.
If you take a typical Engineering student and typical Business student, the first one is likely to earn more. But if the say students are geniuses in their field, which is quite rare given the number of students each degree has, the business student will earn way more.
You take your chances with a business degree, most people doing business already have a job lined up for them in their parents company and only do it for the title. Business is not as easy as it seems, its not merely about learning a set of skills and applying them, there's way more into it and climbing up the ladder is more of an achievement than graduating with a MEng.
Original post by Presetek
That's 5 companies.
If you take the 1000 largest companies in the world I am sure 90% of the CEO's have a business degree.
If you take the 1000 largest companies in the world I am sure 90% of the CEO's have a business degree.
I bet they don't. And certainly not as a first degree.
Sure many will also have an MBA but that's a masters.
You can prove me wrong. Here's the list:
http://www.forbes.com/global2000/list/
(edited 7 years ago)
Original post by Presetek
It's not fair.
The engineers are the ones who should be paid the most, as they are the ones who actually invent and develop the company's products.
The engineers are the ones who should be paid the most, as they are the ones who actually invent and develop the company's products.
But you're comparing apples and oranges.
Yes being an engineer requires a high IQ, and a wealth of acquired knowledge. But, to become a CEO requires a completely different set of skills, business skills.
The income of CEOs relates to their profit making ability. If a CEO has a good background of making businesses thrive, has good decision making, then they'll be worth more to a company, and so earn more.
It's just logic.
Original post by Presetek
That's 5 companies.
If you take the 1000 largest companies in the world I am sure 90% of the CEO's have a business degree.
If you take the 1000 largest companies in the world I am sure 90% of the CEO's have a business degree.
Let's take Europe's largest banks as a perfect examples, BNP Paribas. The CEO is Jean-Laurent Bonnafé, his degree; Engineering.
HSBC. The CEO is Stuart Gullivar, his degrees are Law and Jurisprudence (more law).
(edited 7 years ago)
Original post by Willy Pete
Let's take Europe's 2nd largest bank as a perfect example, BNP Paribas. The CEO is Jean-Laurent Bonnafé, his degree; Engineering.
He is also an ex-worldclass footballer.
Spoiler
Original post by jneill
He is also an ex-worldclass footballer.
Spoiler
Spoiler
Original post by Willy Pete
Spoiler
Spoiler
CEOs are people who give companies direction, formulate strategy for growth, deal with the outside world including governments and media, and keep the company safe from external threats. A person with a degree in engineering who works on the shop floor cannot do any of that.
It takes an enormous amount of courage, confidence, and public speaking to perform the above functions than someone who spends their day in an isolated R&D laboratory room working on something that may or may not work.
It takes an enormous amount of courage, confidence, and public speaking to perform the above functions than someone who spends their day in an isolated R&D laboratory room working on something that may or may not work.
It's their job to make sure the company is making enough money.
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