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I like to consider CEO salaries by the amount they’re getting paid, per employee in the company.

There was a bunch of complaining recently about GM CEO Mary Barra, whose annual compensation is around $30M. GM has around 167,000 employees, so this corresponds to about $180 per employee.

The average employee compensation at GM is around $100,000 per year.

I wonder, did each employee get more than $180 of value from Mary Barra’s leadership?

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I like this as a more precise back-of-the napkin method than what I articulated. I’m not up-to-date with GM and Barra’s tenure.

What I can say is that I’ve personally seen bad leadership teams cost employees much more than $180/year. As a board, it’s hard to look at that prospect and and go cheap on someone with the potential to destroy or create that much wealth.

That's a great way to look at it as well.

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