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Originally Posted by Undertoad
That's true, but irrelevant to the subpoint. You're so attached to your original incorrect point that you're giving up the subpoint. Cool, let's return to your original point.
We're still at our impasse, the mystical CEO who pays his/her people twice, or something, of what the market will bear. Bear in mind that the CEO does not set his/her own salary, the board typically does that. Now, this mystical CEO -- let's say it's a he, and he's running a supermarket chain. He could set the price of a can of peas to $5.00. Why doesn't he do that? He'd sure make a lot more money for salaries.
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Let's call him "the owner", so that we can say he has total power over his compnay. He could raise the price of peas. On the other hand, he
could be satisfied with keeping 25% or 50% of his possible take. What's so wrong about making $100,000, if it means that you'll get better performance and loyalty from your employees, or sell more units, or whatever?
This is like the board game Risk. Have you ever played? Let's say you control Noth America. You could put 20 armies each on Greenland, Alaska, and Mexico, and 1 army on each of the other countries, or you could put 10 armies on Greenland, Alaska, and Mexico, and 2-4 armies on the rest of the coutries. Which makes for a more secure continent?