Japan Airline's CEO Slashes his Pay Below the Pay of Pilots
Japan Airline CEO make less than his own Pilots. U.S. CEO Should Learn from him.
Comments from post:
On top of that, he only owns 17,000 shares of the company, which last closed at 217 yen per share, which is only worth a bit more than $39k USD.
Japanese CEOs tend to make less because while their leadership is important it's not seen as something that's worth 30-39 times the average workers pay. They recognize success involves far more people than the guy at the top and they pay around 17 times the average workers pay. Around the world US CEO's are objectively over paid. They make massive amounts of money but many of them lose money and depart with a golden handshake. On a cost benifit analysis the worst expenditure for an American corporation is the CEO. They can cost hundreds of millions and odds are they will do no better than average and they often require exorbitant exit terms.
How did it get this way? Basically Americans all think they could be that CEO so they don't' mind if the CEO is massively over compensated. Americans have this lottery mentality and refuse to acknowledge that the CEO are almost a dynastic line with few coming from outside of certain social networks. The system don't' work. Expensive but unworthy CEO's and fairly expensive union contracts is what is killing American Competitiveness.