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Date: 2024-04-25 Page is: DBtxt001.php txt00005358

Wages
Top Executives are well paid

Video about Baumer at Microsoft, who took over from Bill Gates.

Burgess COMMENTARY
There is something about the very high rewards to top executives that should be challenged. More than anything else, I want to know where this wealth has come from.

The core of a sustainable economic system is economic activity that creates wealth ... which I call valuadd. Valuadd has the same construct in value accountancy as profit does in money profit accounting. The valuadd in one place may be offset by value destruction in another place.

So where does the money to pay huge remuneration to top executives come from? It comes from the valuadd of the organization, it is a sharing of the business valuadd, and as some get more others get less. There is also the idea that maybe the top executive really made the total of the organization's valuadd bigger than it otherwise would be, and a bigger share is therefore warranted ... and then the question is how much bigger.

This is a tough question to answer in a completely definitive manner ... but a bigger discussion of this is in order.
Peter Burgess



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