Why I like movie stars and rock stars and I really dislike corporate CEOs
I’m in favor of people making a lot of money, and I don’t think that there is anything inherently wrong about making money. However, the more I learn about corporate culture, the more I dislike corporate CEOs who make tens of millions of dollars or more.
There are roughly five types of wealthy people. Rock stars, movie stars, sports players, investment bankers and CEOs. Rock stars, movie stars, sports players and investment bankers get paid based on their performance. If they perform, they get paid. If they don’t perform, they don’t get paid. Rock stars, movie stars and sports players also make money while consumers (fans) choose to pay money to them. Consumers (fans) buy songs and they buy concert tickets. Consumers (fans) watch movies. Consumers (fans) watch sports on TV and at various places like baseball stadiums and tennis courts. Many sports players have sponsorship deals (like Tiger Woods), but consumers are essentially paying for sponsorships. It is true that many of rock stars, movie stars and sports players make exuberant amounts of money, but it’s not like they’re stealing money. It’s not like they’re scamming people. (… unless you count celebrity CEOs like Ken Lay).
How do investment bankers make money? They invest, they get returns and they get paid. The process is not that simple, but that’s what they do essentially. If they get big returns, then they get big payments, i.e., big salaries and bonuses. If they don’t, they do not get big payments. It is true that there are cheaters. It is also true that many of them use questionable tactics. However, there are rules and guidelines. There are also laws. Their activities are monitored and regulated. It is probably fair to say that most of them comply with rules and guidelines in the end; if not, they would often lead unhappy lives (going to jail, etc.).
But how about corporate CEOs? Do they make their money fair and square? Short answer is ‘No.’ Their salaries are not based on their performance. Their bonuses are not based on their performance, either. Corporate CEOs essentially take no risk. If their companies perform (financially), they get paid. If their companies do not perform, they still get paid. I don’t name names because they love abusing lawyers and filing lawsuits, but what (most of ) corporate CEOs do are essentially scams. They all have a single goal, and they do not care about their performance. What’s the goal? Take (or steal) as much money as they can.
I do not say that all corporate CEOs are bad people. I also do not say that there is something inherently wrong about their making tens of millions of dollars. Probably 100 million salary can be justified in some cases. However, generally speaking, being a corporate CEO is one of the biggest scams today. Corporate CEOs do not need to sing or dance well. They don’t need to look pretty, though they probably need to look clean at least. They don’t have to be able to throw a ball at 100 mph. What’s amusing is that they don’t even need to make a good investment. In short, they really do not need to do anything to make money while they get paid tens of millions of dollars.
