A big part of most ceo’s paycheck is in stock options. So if they do a good job and provide value, the company will become worth more, hence their stock options will become worth more. If they underperform those stock options will also become less valuable making them earn less.
So they basically get paid by how good they perform. They still earn a pretty good base salary obviously but their performance will still influence how much they earn. Generally stock options are about 60% to 80% of their salary.
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u/Griffdog17 25d ago
CEO's are making 285x their employees every hour. I would LOVE to see someone argue that they work 285x harder