Viewing a single comment thread. View all comments

chicagotim1 t1_iuftumc wrote

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

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

4

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.

−1

[deleted] t1_iuhl4zj wrote

[deleted]

2

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?

0