You misunderstood, but that's probably my fault because it's hard to convey economic theory accurately in an Internet forum post. In the first statement that "somebody else" is another unrelated human being that exists outside the scope of similar employment. In my example it's not. In reality we're saying the same thing, it's just that one way is typically used when describing labor markets vs the market for widgets or soy beans.
Strike at Deere plants in the US, more supply chain shortage to come
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ericm979
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$1 plus stock sounds like the CEO only makes money if the stock price goes up. Except the stock grants are priced so the CEO makes money even if the stock price goes down. If the price goes down too far the CEO gets new grants at a lower strike price, so they still profit. Often the entire exec team gets the same deal but with smaller amounts, Since they make up much of the compensation committee they approve it. A large payout for the CEO and sr execs is effectively guaranteed. And it's taxed at a lower rate than the same amount in salary would be, so the CEO and exec win there too.
sea2summit
Elite Member
Interesting news from this company in the last 12 months.
-All employees took voluntary pay cut to avoid failure of the company "due to covid impacts"
-Dan Price (CEO) net worth over $12 million...wonder how he pulled that off considering he took a pay cut to "70,000 a year with his employees in 2015" at which time his net worth was between 800k-1.2 million?
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That just depends on what you view as the proper role of government, which is always open to opinion. Should the government control markets and set pricing, either for labor or goods? I'd argue that currently economic mobility is higher in a freer (in the economic sense) system like in the US versus European countries like Germany. With that said, as a society advances you should expect to see that have/have not gap widen as the skills needed for employment increase, eventually getting to the point where too many people get left behind. IOW, in a sufficiently advanced society, there will simply be too few jobs to employ all the humans, and the barrier to entry for even entry level jobs will become so advanced that too many will fail to meet it regardless of how much training and education you give them. That's just a fancy way of saying not everyone is cut out to design spaceships that will take us to Mars. IMO what we're seeing today is the very beginning of that.
That's a good point that many overlook. The CEO of Deere made "only" about $1.2 million in salary, the rest was bonus, short-term incentives, long term incentives, stock, retirement, etc. All up, only about 28% of the total compensation package was cash. The rest was paid only because the CEO met certain predefined performance goals for the company as a whole. Point being that the metrics for CEO vs worker pay are different and they're calculated differently because the two aren't paid in a similar manner, so if you're going to compare them you either need to compare direct salary (not an accurate picture) or total compensation. What's the total compensation package for a 20 year union vet working the line at Deere? I have no idea, but it ain't $40k a year.
ultrarunner
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One metric for managers in my field is bonus tied to percent of staff vaccinated...
But it gets tricky because there are rules limiting the exchange of some medical info...
But it gets tricky because there are rules limiting the exchange of some medical info...
Pixguy
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I was taught that instead of bi*ching about what others make, do what you have to do to get THEIR job.
MossRoad
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Gravity Payments is a privately held company. They don't sell shares. I think you may have it mixed up with another company with a similar name, a South Korean video game corporation.
Gravity (Korean company) - Wikipedia
Gravity Payments - Wikipedia
sea2summit
Elite Member
Interesting. Post corrected.Gravity Payments is a privately held company. They don't sell shares. I think you may have it mixed up with another company with a similar name, a South Korean video game corporation.
Gravity (Korean company) - Wikipedia
en.wikipedia.org
Gravity Payments - Wikipedia
Speedybon2543
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What you will find in since 2000 working at a GMC dealership for 43 years. As a Master GM tech and ASE tech that it's a terrible profession GM cut your pay in every way. Most of all the work now is warranty work that GM sets the labor charged and pays half as much as customers do. Plus the hoops they run you through just to get paid. The experience people are leaving or retiring. So this is what the future holds for you to get your truck repaired. I have over design the engines and the 2020 and 2021 are breaking as early as 3000 miles and up because of the deactivation of cylinders. Now if you don't sign up for Electric Vehicles they will pull your dealership. They think that EV vehicles are going to save the day. The training you need for electric vehicles is extensive and dangerous. Be careful who works on your cars or trucks because they don't know how to repair them. Look what's happening now you have no vehicles on the lot because of shortages of chips. So John Deere welcome to the Club.
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