We all are in belief that Chief Executive Officer of a firm is paid way too much salary for his work when compared to his fellow co-workers.
But ever wondered why and how are CEO’s in a position to make so much money?
There are several explanatory theories laid out to explain this catch- few to justify the move and others to counter the same.
However, most of the explanations are either too dragged-out or way too complicated to comprehend.
As per the Test Tube News video, an US CEO makes 300 times more money, on average, than what their workers earn. Similarly, CEO’s of major Indian companies make a huge sum of money when aggregated against their workers. However in India, according to a survey by the Compass, salaries of the founder’s based in India were persistently lower compared to Silicon Valley based founders. This was the situation even when revenue of the company was high. The survey data suggests that on an average, Indian founders were taking home 40% less salary when compared to their counterparts in the Silicon Valley. The survey established that 72% of startup founders make less than $50k per year. Read more here.
To understand ‘Why CEOs Make So Much Money?’ watch this 3 min video by Test Tube News. The video markedly explains and provides meaningful insights into the situation!
Read about How Much Do Startup Founders Earn ?
Read about Salaries of some of India’s top CEO’s.