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Costco CEO only makes $350,000 a year?

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Originally posted by: Dissipate
Originally posted by: ElFenix
Originally posted by: Dissipate
Do you believe that given a progressive income tax the government wouldn't be tempted to shift the distribution of income upwards to get a higher overall tax take due to higher percentage taxed?
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while that may be true, that isn't reality.

delaware's government doesn't see a dime from the federal income tax, and doesn't see a dime from the state income tax of most CEOs. no, i don't think delaware's business judgement rule is influened by the want of more income taxes. franchise fees? you bet. but not income taxes.
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I'm talking about the federal government. You don't think the feds would want to use CEOs as a front for getting a 30% tax rate as opposed to a 10% or 15% tax rate?
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That's so inefficient though. Some of those taxes might get lost in grant money or to social programs. Thank god they finally came to their senses and made the CEO's feds.
 
Originally posted by: Linux23
Just watched 20/20. The CEO only makes 350K per year (obviously he has stock options), and he has a contract that states he can be fired if he is not doing his job?:Q

Most CEO's make 12X more than that. Why is he so humble? And why are other CEO's making so much damn more money?

I love this guy, seriously.
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Didn't even read any of the posts.

This is how most businesses are run. This is not an exception, this is the rule. So quite the whining and become the next Costco CEO.
 
Originally posted by: JLGatsby
Originally posted by: mugs
Originally posted by: JLGatsby

So by your logic, just pay CEOs anything, just a few pennies, and you'll still attract great talent? Maybe we should cut your salary. I'm sure someone good enough will come along and do just as good of a job for less.
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The idiocy of your posts astounds me more and more every day. I never said that. I never said anything resembling that. I never said anything that could have been misconstrued or mangled to mean anything similar to that.

What I said was that Costco seems to be doing alright with their current CEO, despite paying him only $350,000. Perhaps he does a good job for a reason other than collecting a salary? Perhaps its because as a co-founder of the company, he has a personal interest in seeing it do well. Perhaps it's because he owns a ton of Costco stock, so the better the company does the wealthier he is. Perhaps it's because he has enough money to live several lives, and he just wants to prove that a company can succeed AND not pay their employees widely disparate salaries.
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I actually think the last one is true in his case.

But you cannot possibly say that by paying less, you're still going to get the same talent.

Pay more, you'll get better people. It's an age old rule in business.
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Bullsh1t, I seen Trading Places.
 
It hasn't been mentioned in the thread yet, but you have to remember that this isn't some hired gun CEO - he helped found the company. As such, it's market position, it's hiring of other great executives and talent, etc. is due in large part to him and his expertise. Hope he gets rich as hell...I love Costco.

Interestingly, what Gatsby is saying about Sears is very true - I am leading an effort to build a new processing system for a large, conglomerate finance company, and a vendor that I am working with used Sears as the best example of a multiple financial product company that they did business with and could pull examples from. And this vendor works with probably 20 other financial providers, including Citi.

Future Shock
 
Originally posted by: Red Dawn
After you make ten or twenty million isn't making even more a case of ego or greed rather than need?
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I could spend twenty million on a painting to hang above my toliet.

Larry Ellison (founder of Oracle) lives in a $140 million house. Owns a $250 million (yes, quarter of a billion dollars) (and nearly 500 ft) yacht. Spent another $100 million on his America's Cup team. Owns fighter jets and commercial sized private airplanes.

Ira Rennert recently built a $180 million, 110,000 square foot house in East Hampton, NY. Property taxes alone will be nearly $2 million a year.

Donald Trump's home/club, Mar a Lago in Palm Beach is estimated to be worth over $200 million.

Money is easy to spend. $20 million won't buy you a life of luxury in a big city, such as New York, where the AVERAGE condo goes for over $1 million. It might make you comfortable, but won't be "living it up."

The CEO of a $20 billion company (which Costco is) should atleast be able to let his imagination run a bit and have some fun. $20 million won't allow you to do that.
 
Originally posted by: JLGatsby
Originally posted by: Red Dawn
After you make ten or twenty million isn't making even more a case of ego or greed rather than need?
Click to expand...

I could spend twenty million on a painting to hang above my toliet.

Larry Ellison (founder of Oracle) lives in a $140 million house. Owns a $250 million (yes, quarter of a billion dollars) (and nearly 500 ft) yacht. Spent another $100 million on his America's Cup team. Owns fighter jets and commercial sized private airplanes.

Ira Rennert recently built a $180 million, 110,000 square foot house in East Hampton, NY. Property taxes alone will be nearly $2 million a year.

Donald Trump's home/club, Mar a Lago in Palm Beach is estimated to be worth over $200 million.

Money is easy to spend. $20 million won't buy you a life of luxury in a big city, such as New York, where the AVERAGE condo goes for over $1 million. It might make you comfortable, but won't be "living it up."

The CEO of a $20 billion company (which Costco is) should atleast be able to let his imagination run a bit and have some fun. $20 million won't allow you to do that.
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LOL, I don't know about you but I think I could have a pretty damn good time with 20 Mill in the bank:laugh:
 
Originally posted by: Red Dawn
Originally posted by: JLGatsby
Originally posted by: Red Dawn
After you make ten or twenty million isn't making even more a case of ego or greed rather than need?
Click to expand...

I could spend twenty million on a painting to hang above my toliet.

Larry Ellison (founder of Oracle) lives in a $140 million house. Owns a $250 million (yes, quarter of a billion dollars) (and nearly 500 ft) yacht. Spent another $100 million on his America's Cup team. Owns fighter jets and commercial sized private airplanes.

Ira Rennert recently built a $180 million, 110,000 square foot house in East Hampton, NY. Property taxes alone will be nearly $2 million a year.

Donald Trump's home/club, Mar a Lago in Palm Beach is estimated to be worth over $200 million.

Money is easy to spend. $20 million won't buy you a life of luxury in a big city, such as New York, where the AVERAGE condo goes for over $1 million. It might make you comfortable, but won't be "living it up."

The CEO of a $20 billion company (which Costco is) should atleast be able to let his imagination run a bit and have some fun. $20 million won't allow you to do that.
Click to expand...
LOL, I don't know about you but I think I could have a pretty damn good time with 20 Mill in the bank:laugh:
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That's because you have low standards and no taste.

Like a squirrel who found a nut in the backyard, some people are satisfied with anything.

Besides, where do you live? I would wager it's in a place where the cost of living is low.
 
Originally posted by: JLGatsby
Originally posted by: Red Dawn
Originally posted by: JLGatsby
Originally posted by: Red Dawn
After you make ten or twenty million isn't making even more a case of ego or greed rather than need?
Click to expand...

I could spend twenty million on a painting to hang above my toliet.

Larry Ellison (founder of Oracle) lives in a $140 million house. Owns a $250 million (yes, quarter of a billion dollars) (and nearly 500 ft) yacht. Spent another $100 million on his America's Cup team. Owns fighter jets and commercial sized private airplanes.

Ira Rennert recently built a $180 million, 110,000 square foot house in East Hampton, NY. Property taxes alone will be nearly $2 million a year.

Donald Trump's home/club, Mar a Lago in Palm Beach is estimated to be worth over $200 million.

Money is easy to spend. $20 million won't buy you a life of luxury in a big city, such as New York, where the AVERAGE condo goes for over $1 million. It might make you comfortable, but won't be "living it up."

The CEO of a $20 billion company (which Costco is) should atleast be able to let his imagination run a bit and have some fun. $20 million won't allow you to do that.
Click to expand...
LOL, I don't know about you but I think I could have a pretty damn good time with 20 Mill in the bank:laugh:
Click to expand...

That's because you have low standards and no taste.

Like a squirrel who found a nut in the backyard, some people are satisfied with anything.

Besides, where do you live? I would wager it's in a place where the cost of living is low.
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So I have low standards because I would totally happy with 20 Mill in the bank?:roll:
FYI Bunky I don't need vast sums of money to be happy.

As for living in an area where the cost of living is low, well let's see, for most of my life I lived in the San Francisco Bay Area and for the last 3 1/2 years I've been living in Boston. Yeah I live/lived in areas where the cost of living is low:laugh:

 
Originally posted by: JLGatsby


That's because you have low standards and no taste.

Like a squirrel who found a nut in the backyard, some people are satisfied with anything.

Besides, where do you live? I would wager it's in a place where the cost of living is low.
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taste and excess are exclusive things... sorry you live in a fantasy world where you have to plop down your wallet and measure your c*ck against everyone else's
 
Originally posted by: Dissipate
Originally posted by: ElFenix
while that may be true, that isn't reality.

delaware's government doesn't see a dime from the federal income tax, and doesn't see a dime from the state income tax of most CEOs. no, i don't think delaware's business judgement rule is influened by the want of more income taxes. franchise fees? you bet. but not income taxes.
Click to expand...

I'm talking about the federal government. You don't think the feds would want to use CEOs as a front for getting a 30% tax rate as opposed to a 10% or 15% tax rate?
Click to expand...

the federal government isn't the legal system that corporate cases fall under. delaware's is. the legal rules that allow american CEOs 15x their german and japanese counterparts were developed by the courts in delaware. the federal government's want for more income tax revenue has nothing to do with it.
 
Good grief Gatsby.....do you have to be a complete ass in every thread that you post in? It seems like you know everything there is to know in every thread that you post in. If you have a difference of opinion, that's fine. There's no reason to have that degrading tone whenever someone says something you don't agree with. Try to have a little bit of tact once in a while, will you?
 
Originally posted by: Dissipate
Originally posted by: ElFenix
Originally posted by: Dissipate

Blame it on the progressive income tax. Suppose if $100,000 goes to 1 person, that person pays 30% in income tax, but if it goes to 3 different people they only pay a few percent in income tax. Who do you think the government would most want to get the $100,000?

Big corporations and CEOs with outrageous paychecks can all be blamed on business protections enforced by the government in order to skew the distribution of income in order to maximize tax revenue.

That's my theory and I'm sticking with it.
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actually its delaware's business judgement rule, which isn't influenced by the federal income tax.
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Do you believe that given a progressive income tax the government wouldn't be tempted to shift the distribution of income upwards to get a higher overall tax take due to higher percentage taxed?
Click to expand...
Funny thing that income distribution keeps getting more skewed even as tax rates have become slowly less progressive over time.
 
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