Amid wage stagnation, corporate leaders declare the end of annual raises triggered by increased profitability

[iamnoskcaj]

[Manqueman]

Two quick points:
This is why inflation’s low – so much downward pressure on wage growth. Till recently, there was none, now there’s minimal, limited growth.
And a couple of months ago when a spike in growth was seen, it was traced back to a spike in growth for top management while still close to none for everyone else.
I mean, MAGA!

[Wanderfound]

@Manqueman

This is why inflation’s low – so much downward pressure on wage growth. Till recently, there was none, now there’s minimal, limited growth.

That seems an appropriate cue to bring on the Mark Blyth:

Mark Blyth: "Global Trumpism" And The Revolt Against The Creditor Class

He gets into inflation and employment after about two minutes.

[AndreStmaur]

@DukeTrout

The thing is, having worked for or closely observed companies where workers are either, 1. Treated well, or 2. Treated badly, companies in group #1 succeed, massively. Companies in group #2 stagnate and perform mediocrely. Companies that shift from #1 to #2 go from high-performing to poor-performing or even just collapse.

Reams of HBR articles support this thesis. And yet executives at so many companies actively choose path#2. That is why CEOs don’t deserve their outlandish, disproportionate pay. Most lack the basic sense to learn from previous experience.

What you are saying is perfectly true, but forgets one aspect that the same reams of HBR articles also support: executives get much better pay when they choose path #2.

[DukeTrout]

True, but “much better” is like, 20-25%, for people who are making 300 times the median worker salary. The ones who choose path#1 could be replaced by a Magic 8-ball with better outcomes for the company, and still make $10M+/year.

[AndreStmaur]

@DukeTrout

True, but “much better” is like, 20-25%, for people who are making 300 times the median worker salary.

You don’t get to earn 300 time the median worker salary if you are not obsessed with every single dollar, so a 20% gain…