Good for him. It's a good gesture but still a mere gesture. If his salary reduction amounts to more than a handful of days' operating costs, I'd be floored. Wonderful as it may appear, it likely won't save a single job. Its misdirection at its finest.
I watched this exact clip in university class a couple of weeks ago. Some additional reasons for the high pay gap between Japan's and USA's CEOs are that in Japan, labour markets have always been company-internal and there has been no compulsion for public disclosure about CEOs' income until some years ago. Therefore there has been no competition about which company gets the best CEO. This is exactly the opposite in the USA, and since every CEO claims to be a better performer then the statistic mean, he demands to get a higher payment as the mean. This led to a still continuing upward spiral for CEO wages. Congrats for reading, you actually aquired some valid information on a wtf website.
He's odd, but US CEOs could stand to learn a few things from that man. I respect him. The stuff about his wife at the end made me lol though.
ReplyDeleteGood for him. It's a good gesture but still a mere gesture. If his salary reduction amounts to more than a handful of days' operating costs, I'd be floored. Wonderful as it may appear, it likely won't save a single job. Its misdirection at its finest.
ReplyDeleteIt's not so much about savings but company morale. Though in that extreme 200 mio USA case, it could easily make a difference to the job count too.
DeleteI watched this exact clip in university class a couple of weeks ago. Some additional reasons for the high pay gap between Japan's and USA's CEOs are that in Japan, labour markets have always been company-internal and there has been no compulsion for public disclosure about CEOs' income until some years ago. Therefore there has been no competition about which company gets the best CEO. This is exactly the opposite in the USA, and since every CEO claims to be a better performer then the statistic mean, he demands to get a higher payment as the mean. This led to a still continuing upward spiral for CEO wages. Congrats for reading, you actually aquired some valid information on a wtf website.
ReplyDelete