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View Diary: On the 'Vindication' of Marx *updated (208 comments)

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  •  the CEO sells his labor. (2+ / 0-)
    Recommended by:
    hmi, VClib

    he uses the proceeds to invest, but he's still selling his labor for capital.  some of that goes into commodities, a lot back to capital.

    •  But he doesn't need to do so (5+ / 0-)

      Almost any CEO of a major corporation could retire at any point and live very comfortably off of his investments. Unlike a worker, he does not need the income earned from work. In fact, there are many CEOs who take no, or only a nominal salary. You would be hard pressed to find a CEO of a major company who makes more by selling his labor than he makes by lending his capital.

      •  I knew this would provide for an interesting (2+ / 0-)
        Recommended by:
        melo, Barton Funk

        discussion. I was unavailable on long, grueling and occasionally scary bike ride. Now I have even fewer functioning braincells.

        I appreciate the responses and in particular the added analysis. As I said I've forgotten a great deal over time.

      •  Seth - I don't think that is accurate (0+ / 0-)

        In large part because total CEO compensation is so high. The average total compensation for a Fortune 500 CEO is about $13 million. Only about $3-4 million is cash. The balance is equity compensation that will be earned over the next four years and depends on the price of the company's stock. It actually takes a lot of capital to have annual investment income in the range of $10 million a year. Even at 10%, which would be a high rate of return, would require an investment portfolio of $100 million. At a more realistic 5%, it would be twice that amount. Most Fortune 500 CEOs don't have a net worth in excess of $100 million and if they do it's not all invested in financial assets. The guys with the really big bucks are CEOs of financial services firms or investors, rather than operating executives.

        "let's talk about that"

        by VClib on Sat Apr 13, 2013 at 10:38:34 PM PDT

        [ Parent ]

    •  The question is one of (0+ / 0-)

      whether or not the person is enslaved by a certain relation to labor.  Does the person have the choice of jumping out of the entire game altogether, or is it a necessity for them to sell their labor in order to live at all.  The CEO has that choice.  Most others do not.

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