Have you ever wondered why CEOs get paid millions of dollars to do their job?

Last year the CEO of Apple, Tim Cook was paid a total of $98.7 million, that’s 1,447 times more than the median pay for employees at apple.

The CEO of Microsoft was paid around $55 million and Mark Zuckerberg was paid $25.3 million.

Now the question is why, why are they paid so much money just to do their job, it’s not like they work harder or more hours than all the other employees in their company.

Then what is it that lets them make so much more than the average employee?

Well... to understand why, lets suppose we have two companies worth one hundred billion dollars each.

Now the first company does pretty good, in a year the CEO is able to increase the company value by 20%.

The CEO of the second company however, makes some different decisions and ends up increasing the company value by 30%, which is only 10% more than the first company.

But when you look at the dollar amounts, that’s a difference of ten billion dollars just from the decisions they make and being in a position of leverage.

Want to know if you make high quality decisions? Just check if you’ve pressed that subscribe button :)

свернуть