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PompiPompi t1_iuforer wrote

Reply to comment by [deleted] in [OC] CEO Compensation Growth Outpaces Stock Market since 1978 by row64software

Taking a percentage of a percentage is kind of stupid.

This is not a 40% difference, it's a 400% difference.

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chicagotim1 t1_iuftumc wrote

Since 1978 my investment has gone 10X while CEO pay has gone up 14X. A 40% difference.

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PompiPompi t1_iuh554z wrote

Let's say your investment is 1.

Let's say your yearly salary is 1.

In 1 year, your investment increased by 10x, so now it's 10

In one year, your salary increased by 14x, so now it's 14.

Another year, your investment increased by 10x, so now it's 100.

The same year, CEO salary increased by 14x, so now it's 196.

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[deleted] t1_iuhl4zj wrote

[deleted]

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PompiPompi t1_iuhlu0k wrote

Doesn't matter if it's a yearly growth or 10 years growth.

The point is, it's on a period of time.

I mean, what happens the next 10 years? Does the stock stay the exact same amount for ten years? Does that mean it is still 1000% up?

So in 10/20/whatever years, the stock raised by X percent. when happens in the next 10 years though? The increase in X percent is from the original amount or the amount after the X percent increase?

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[deleted] t1_iufpj7v wrote

[deleted]

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PompiPompi t1_iufqa7k wrote

You don't understand what you are talking about.

We are measuring growth.

Growth already measure rate.

What you are doing, is second order growth.

You are measuring the growth of the growth.

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[deleted] t1_iufqhci wrote

[deleted]

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[deleted] t1_iufr3ev wrote

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PompiPompi t1_iufrl8o wrote

You are measuring compensation, not salaries.

Most of the CEO's compensation probably come from stocks anyway.

Imagine the stocks also has dividends.

If the CEO's salary is so high, then he would get less compensation in stocks.

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[deleted] t1_iufrs2c wrote

[deleted]

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PompiPompi t1_iuftht4 wrote

You are measuring the growth of the growth.

You make no sense.

You need to go back to school.

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