Why CEOs Get Paid A Lot – The Quality Of Management Really Matters

This isn’t quite what this paper was asking but it is rather what has been answered. Why is it that managers and CEOs get paid a lot? Because the quality of management matters rather a lot</a>:

Managerial quality and productivity dynamics
Achyuta Adhvaryu, Sadish D, Anant Nyshadham, Jorge Tamayo 19 August 2019

Managerial quality remains low in firms in developing countries. In the context of the Indian garment industry, this column shows that manager characteristics matter for productivity.…

See More

Stop Dribbling Woman – Jane Austen Wasn’t Underpaid

A little exegesis of how stories become garbled – and feminised – as they pass along the line. Here at Vox we’re told that Jane Austen was underpaid, wildly underpaid in fact, even by the standards of her time:

Apparently Jane Austen was wildly underpaid, even by the standards of her day! You just know she would have had something great to say about that.

That’s the entirety of the entry on Austen there, even though the headline is:

Jane Austen was shockingly underpaid compared to other authors of her era

There is a problem with this.…

See More

Bit Of A Surprise, Glasgow City Council Called Incorruptible

Given the history of one party fiefs in local government the idea that Glasgow City Council is incorruptible comes as something of a nice surprise. Although it should be said that this hasn’t been said as praise, we should still take it that way.

The background is that the female workers there won a big court case. Apparently men working outside in all weathers were paid more than women working indoors with no heavy lifting. This was sexual discrimination and illegal.…

See More

Are We Sure That Mariana Mazzucato Understands The Basic Concepts Of Economics?

On the basis of this Professor Mazzucato seems entirely unaware of even the simplest findings of the subject she herself is a professor of:

As our Swindon correspondent explains:

“Well, the simple answer is that it’s about supply and demand.…

See More

No, Really, Elon Musk Did Not Make $2.3 Billion From Tesla Last Year

Business Insider tells us that Elon Musk got paid $2.3 billion last year to be the CEO of Tesla.

No, really, Elon Musk did not get paid $2.3 billion to be CEO of Tesla last year. Not even close.

Business Insider tells us this because the New York Times said so, because they were told so by Equilar. And no, this is not correct – it’s Equilar who have their measure of CEO compensation wrong.…

See More

BBC Feminism Pay Row Kills Entire NHS Career Structure

There’s a very fun little row going on inside the BBC over pay. One woman is claiming that she’s been offered a job – same grade, same responsibilities etc – as a bloke and yet she’s being offered a different amount of money. Lower, obviously. Sexism! Patriarchy!

Management’s answer is that this is her first job at this sort of level, it’s a decent step up for her. The bloke’s been doing this sorta stuff for some years.…

See More

Adam Smith Was Right You Know – All Jobs Pay The Same

Adam was being Smithily rhetorical when he declared that all jobs pay the same. Today we’d argue that it’s jobs requiring the same sort of skills, training, commitment, which all pay the same even if wages vary wildly. And even then we’d not really be insisting upon exact equivalence.

Yet there is also great explanatory power to the insistence. Some large portion of people simply wouldn’t work in finance at all – that being a good reason why finance jobs are highly paid, to get people to go do those boring or unfashionable jobs.…

See More

It’s Possible That Abigail Disney Is Ever So Slightly Hypocritical Over Bob Iger’s Pay

Abigail Disney is one of the heiresses to the fortune created by Walt Disney and the company bearing his name. In fact she’s got about $500 million’s worth  – possibly tied up in trusts but still. Abigail Disney also tells us that the CEO of Disney, Bob Iger, is paid too much. That could be true of course. But it cannot be true for the reason she gives, that no one is worth that much.

For Mr.…

See More

Huzzah, The Guardian Gets Story About Goldman Sachs Pay Cuts Right

We do all rather need to start worrying when it’s The Guardian, near uniquely among the legacy media, which manages to get this story about the Goldman Sachs pay cuts right. For of course Goldman hasn’t cut the pay of employees in the slightest. Hard headed business types tend not to do that as they’re entirely aware of Keynes’ point, we humans really hate having our nominal pay cut.

You know, one of the major reasons why recessions even exist, why wouldn’t Goldman Sachs know about that.…

See More

But Why Should Housing Developers Pay For Schools?

There’s a certain logical fallacy on display here concerning the provision of schools and other public infrastructure. The problem coming from the actual definitions of why we bother to have government at all. Which is to provide, collectively, those things which don’t make sense to have provided individually, or even under the normal influences of market incentives.

That’s what government’s for, to produce those things that not-government won’t. At which point, why insist that the private sector must build schools?…

See More