Microsoft Lay-offs - while CEO earns $84m in first year

[Vanderburg]

To everyone crying about this, think of the tax money he can pay for it, so other people can be lazy sitting around collecting welfare and food stamps they can sell for cash.

[dalekphalm]

It's still his money even if it's on stock. Vis a vis he'd have to pay taxes you can't tell the government "Oh no I need unemployment money I don't have a job" while you own several multi million dollar buildings they're still your property.

I agree, he still pays taxes on it, and it's still "compensation", but it's also a lot less fluid compared to cold hard cash. He will still make a killing on dividend payments though!

 

I'm not disputing the worth, just trying to clarify how they actually pay him.

 

 

​Greece didn't have taxes. They ran themselves into the ground - but that's a different topic.

 

 

 

 

The "Super Rich" have always existed, but with todays access to all these things, and social media, we just see it more often.

Agreed. In some ways, the "Super Rich" have lost so much of their power compared to history, where if you were rich or an aristocrat/royalty/noble-blood, you basically didn't have to follow the laws, and could do literally whatever you wanted to peasants or lower class people.

 

But today with social media and the internet presence, we're much more aware of who is rich, but also what they do, how they spend their money, what kind of charity (if any) they do, etc. Rich people also still have to follow our laws.

 

Now if you say that the super rich can buy themselves out of trouble - that's an entirely different situation that has to deal with the effectiveness of whatever your local legal system is, and that has no place in this discussion.

[spartaman64]

i dont think how hard people work should directly translate into how much they are paid. so a factory worker works 14 hours a day and a doctor works 6 hours a day i think the doctor should still earn more

[spartaman64]

To everyone crying about this, think of the tax money he can pay for it, so other people can be lazy sitting around collecting welfare and food stamps they can sell for cash.

its much harder to live off of welfare than most people think

[backslash]

https://www.aei.org/publication/a-ceo-explains-why-ceos-make-so-much-money/

 

tl;dr: In America, companies have to disclose CEO pay, which is determined by the board. Boards with low-performing CEO's don't want it to look like they have low-performing CEO's, so they raise compensation to average. Then, for high performers to be paid well, their compensation has to be increased, thereby raising the average. Rinse, repeat.

[Deletive]

His base salary is only $918,917 a year,everything else is either shares of some extra cash.Most of that 84million was shares some of which he doesn't get until 2019. he only got a cash bonus of 3.6million and the rest was shares probably was in a one-time grant of restricted stock units—RSUs—which only gradually convert into shares he owns and can sell over the course of x number of years. So there is more to this then people think.

Same thing happened with Tim cook with his 377million in the first year, he probably hasn't even gotten 1/10th of it yet.

[IAMSWIFT1]

You don't need $84 million. Those employees could have been paid very well which would over time improve the economy if every CEO did this. Of course dollar values would have to change but in the end everyone would be better off.

Honestly,You Don't Need More Than A Million A Year,I Wouldn't Even Know What To Do With 1 Million A Year

[mr moose]

His base salary is only $918,917 a year,everything else is either shares of some extra cash.Most of that 84million was shares some of which he doesn't get until 2019. he only got a cash bonus of 3.6million and the rest was shares probably was in a one-time grant of restricted stock units—RSUs—which only gradually convert into shares he owns and can sell over the course of x number of years. So there is more to this then people think.

Same thing happened with Tim cook with his 377million in the first year, he probably hasn't even gotten 1/10th of it yet.

 

Not only that, but people really don't sit down and consider just how hard your average CEO has worked over their entire life to get to that position.  Then the position has so many facets, not only are they the linch pin that keeps the company running.  They may only be one person but history has shown if they are shit then a lot more people lose their jobs than when they are good.

[Murdoch]

His base salary is only $918,917 a year,everything else is either shares of some extra cash.Most of that 84million was shares some of which he doesn't get until 2019. he only got a cash bonus of 3.6million and the rest was shares probably was in a one-time grant of restricted stock units—RSUs—which only gradually convert into shares he owns and can sell over the course of x number of years. So there is more to this then people think.

Same thing happened with Tim cook with his 377million in the first year, he probably hasn't even gotten 1/10th of it yet.

 

Good points. For those people thinking it's an obscene amount of money, consider this. If the CEO of the company isn't getting a cut of the shares, or profits, think about where else that money would go. It would most likely be paid out as a dividend to shareholders, who literally do nothing for the money (at least in many cases).

[Deletive]

Not only that, but people really don't sit down and consider just how hard your average CEO has worked over their entire life to get to that position.  Then the position has so many facets, not only are they the linch pin that keeps the company running.  They may only be one person but history has shown if they are shit then a lot more people lose their jobs than when they are good.

Yep, you either give yourself the position when you start the business which takes a whole ton of work to begin with from the start while you're making little to nothing and once you slowly start to break even your salary doesn't for awhile after that, or you work through a company show yourself, get a masters in that field (presumably) and can prove you know how to run a company. which isn't as much work as starting a company yourself but picking up what was left off is no easy task or helping lead thousands of employee's and the whole company in a different direction.

Being a board member is definitely no easy task either.

Good points. For those people thinking it's an obscene amount of money, consider this. If the CEO of the company isn't getting a cut of the shares, or profits, think about where else that money would go. It would most likely be paid out as a dividend to shareholders, who literally do nothing for the money (at least in many cases).

Without the shares, he owns none of the company but still leads the front force of it. Sure you run the whole thing but you are technically just another person working for the company instead of actually owning part of it which is huge considering you're running a corporation and the people that put their work into making the best for it.

[ItsAFeature]

Honestly,You Don't Need More Than A Million A Year,I Wouldn't Even Know What To Do With 1 Million A Year

 

Try living in New York City. I've been here a week and I'm already convinced that I'd have to make at least a million to live comfortably here. I imagine it's much the same in cities like San Francisco and Seattle.

 

Plus I'm sure I could find a way to spend it on PC parts and cars.

[IAMSWIFT1]

Try living in New York City. I've been here a week and I'm already convinced that I'd have to make at least a million to live comfortably here. I imagine it's much the same in cities like San Francisco and Seattle.

 

Plus I'm sure I could find a way to spend it on PC parts and cars.

Well,Im Thinking If I Lived In My Town

[BloodySinner]

To everyone crying about this, think of the tax money he can pay for it, so other people can be lazy sitting around collecting welfare and food stamps they can sell for cash.

 

So ignorant.

[IMPERIUS]

i guess they werent needed not that MS couldn't pay them

[Murdoch]

So ignorant.

 

Indeed, who picks up the tab when thousands of people are made redundant by a large corporation and have to find other work, while trying to feed their families on a daily basis. In most cases, it falls back to social security systems, because once you're not needed, a corporation will drop you like a stone.

[Arty]

Honestly,You Don't Need More Than A Million A Year,I Wouldn't Even Know What To Do With 1 Million A Year

do what gates does donate it all away before he dies !

[Vanderburg]

Indeed, who picks up the tab when thousands of people are made redundant by a large corporation and have to find other work, while trying to feed their families on a daily basis. In most cases, it falls back to social security systems, because once you're not needed, a corporation will drop you like a stone.

 

So if they aren't needed, the company should keep paying them because...charity?

[Murdoch]

So if they aren't needed, the company should keep paying them because...charity?

 

No, you misunderstand what I'm saying. I'm saying everybody pays into the tax system for those reasons, and we all benefit from it (corporations included). Not just lazy people living off welfare.

[Vanderburg]

No, you misunderstand what I'm saying. I'm saying everybody pays into the tax system for those reasons, and we all benefit from it (corporations included). Not just lazy people living off welfare.

 

Yeah, I don't disagree with you. My original post was half sarcastic. I have no problems with the employees laid off collecting unemployment, etc, as long as they are actively searching for another job.

[dalekphalm]

Yeah, I don't disagree with you. My original post was half sarcastic. I have no problems with the employees laid off collecting unemployment, etc, as long as they are actively searching for another job.

As they should be. And Microsoft very generously compensated anyone who got laid off. Most of them got like 6 months worth of pay as severance. They should have plenty of time looking for work.

 

And if you work for Microsoft, and you're good, you'll have NO PROBLEM finding work elsewhere.

[Murdoch]

As they should be. And Microsoft very generously compensated anyone who got laid off. Most of them got like 6 months worth of pay as severance. They should have plenty of time looking for work.

 

And if you work for Microsoft, and you're good, you'll have NO PROBLEM finding work elsewhere.

 

Yeah I was gonna add, MS have fairly favourable severance packages. My post above is more concerned with low level work, or companies that don't have such favourable contracts. Which is where social security comes in.

[TroubleKlef]

The reason why CEOs get paid so much (whether by salary or stock options) is that they hold THE MOST IMPORTANT POSITION OF THE COMPANY. Yes you could argue, "well without the regular employees, the CEO would be the company of nothing", but you have to realize the decisions (which are VERY hard decisions) made by the CEO determines the direction and success of said company. If the CEO fucks up, not only does the company fail but everyone's jobs are lost with it. 

 

So what does a CEO do? He has to make the HARD decision to lay off people in order to move the company into a better direction so the company can keep the REST OF THE COMPANYS EMPLOYEES EMPLOYED.

 

Yes he could take a pay cut and continue to employ these guys but would if you're running a business would you pay someone that isn't doing anything?

[MatthewEnderle]

The thing that pisses me off is actually when everyone says to split his salary in half and give it to the other people. He is earning his salary.

[Murdoch]

The reason why CEOs get paid so much (whether by salary or stock options) is that they hold THE MOST IMPORTANT POSITION OF THE COMPANY. Yes you could argue, "well without the regular employees, the CEO would be the company of nothing", but you have to realize the decisions (which are VERY hard decisions) made by the CEO determines the direction and success of said company. If the CEO fucks up, not only does the company fail but everyone's jobs are lost with it. 

 

So what does a CEO do? He has to make the HARD decision to lay off people in order to move the company into a better direction so the company can keep the REST OF THE COMPANYS EMPLOYEES EMPLOYED.

 

Yes he could take a pay cut and continue to employ these guys but would if you're running a business would you pay someone that isn't doing anything?

 

What do you think about the idea that some people on the left have about using some sort of multiplier for CEO wages, to say something like they can only earn 25x more than the lowest earning employee. There's no doubt that inequality is rising at unprecedented levels. CEOs now earn orders of magnitudes more than they used to, in comparison with their employees.

[TroubleKlef]

What do you think about the idea that some people on the left have about using some sort of multiplier for CEO wages, to say something like they can only earn 25x more than the lowest earning employee. There's no doubt that inequality is rising at unprecedented levels. CEOs now earn orders of magnitudes more than they used to, in comparison with their employees.

 

Probably something to do with companies growing to unprecedented levels (how big is Apple again?) and the idea of globalization. As more and more jobs are starting to become transferrable over seas, the pool of labor increases and as with the law of supply and demand, you get paid less when there are 500 other people competing for the same job. The thing with CEOs however, is that they're not really able to do their jobs behind a computer overseas. They very much need to be present.