How American CEOs Got so Filthy Rich

Capitalism, government policies, and various other factors have contributed to a situation where a small portion of the population possesses and controls a significant share of the nation's wealth. However, the issue lies in the lack of fluidity in wealth distribution. As one segment of the population becomes wealthier, another often faces impoverishment. Consequently, a substantial pay gap has emerged between CEOs and regular workers. CEOs and investors have experienced exponential growth in wealth, while workers have suffered from reduced wages, a declining middle class, and an overall decline in their quality of life.

Over the years, there has been a remarkable transformation in the labor market and economy, impacting nearly everyone's lives. Companies now prioritize maximizing profits and benefiting their investors. To achieve this, companies seek CEOs who can ensure their workforce operates more diligently and efficiently, generating increased revenue. To attract top-tier CEOs, companies must offer highly appealing salaries exceeding the industry average.

As companies escalate CEO salaries, the industry average for CEO compensation rises, leading to further pay increases. However, factors such as globalization and inadequate labor standards make it easier for companies to pay their employees as little as possible. Consequently, workers' wages have seen minimal growth over the decades. It is worth noting that not every country follows a system like that of America. In many Asian and European countries, the disparity between the average worker and CEOs is not as pronounced. Thus, the question arises: why are American CEOs exceptionally affluent, and how did we arrive at this point?

0:00 - Intro
1:54 - What's in the Stocks?
4:29 - Accountable to Investors, not the Company
8:40 - Superstar CEOs
9:42 - Competitive Pay
11:36 - Possible Solutions?