Want to know why CEOs make so much money?
May 28, 2013
Last Thursday after the market closed Proctor & Gamble replaced its CEO. It was a surprise. On Friday P&G stock rose $3.18/share (4.04%) while the S&P was nearly unchanged. And there wasn't, apprently, any other significant news about P&G. So that means the market's estimate--it doesn't have to be right, but economists think it's a pretty good guess--is that the new CEO's worth to P&G is $3.18/share times 2.74 billion shares outstanding, about 8.71 billion dollars.
If that estimate is correct, a few million dollars a year, or even a few tens of millions of dollars a year, is chicken feed.