Re: CEOs are rewarded for laying off workers

From: Louis Newstrom (nnewstro@bellsouth.net)
Date: Wed Aug 29 2001 - 11:14:09 MDT


From: "Dickey, Michael F" <michael_f_dickey@groton.pfizer.com>
> Is it not obvious that if two companies have Identical overhead and one
has
> 20% more employees while the other has 20% fewer employees and a CEO that
> makes 20% more money that one will be a much greater competitor? Please
> point out the fallacy in this logic...
>

Since CEO's make about 50 times as much money as the average employee, then
the first company (20% more employees) is paying 50 times less for their
more employees than the second company (20% higher CEO salary) is paying for
their CEO.

So the first company has lower costs AND more workers. It will obviously be
a greater competitor.



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