[quote=XBoxBoy][quote=SDEngineer]You could use this argument against every position in every company, public or private, and wind up proving that virtually everyone is overpaid.[/quote]
Sorry, I don’t follow the logic of this argument. What I think you’re saying is that if you use the two criteria that I outlined:
1) Does this person bring enough added value to the organization to justify their pay.
2) Can this job be filled by an equally capable person for less pay and retirement.
everyone at every company is over paid.
Can you support that view with something? Or if I’ve misunderstood your argument, please clarify for me.
My personal experience at virtually every company I’ve worked at (or run) is that in the private sector you have to ask that question continually, or your company will not be competitive and will fail. (Hmmmm… maybe that explains why a lot of companies are failing lately)
While I’m not sure how you would prove the point that top managers are overcompensated, my experience is that most people running large organizations got there (and are making the 250k-350k salaries you mention or even more) not because no one else wanted or could do the job, but because they were good at working the politics and self promoting. Often the best in our companies do not receive the recognition or the pay they deserve while the manipulative do. Just my experience though.
[/quote]
It’s mostly based on #2, not #1 – because I think that previous arguments that were laid out support the fact that the chief in charge of a thousand person fire department probably does bring enough to the table to justify the pay – in fact, is (like many public employees) probably underpaid comparing what her skillset would command in the private sector (hence the retirement package). I think you’ll find that many who go into public service go in with eyes open KNOWING that they will be compensated less on an annual basis than they could make in the private sector, but accepting that as a tradeoff to a more secure job with a defined retirement plan.
I suspect your #2 point above however, could be used against most employees, public or private – it seems to me that for any reasonably well paying position that you could always find someone who would be willing and could do the job for less.
However, I do agree with your other point, that most top executives got where they did not because their skills are necessarily better, but because they were better at playing office politics – however, this just goes to #2 above again. Considering argument #1, I still believe that in their position, with their responsibilities, no matter how they got the job, their pay is fairly well deserved.
