Comment by vladms

Comment by vladms 6 hours ago

1 reply

Companies are controlled by shareholders who appoint the board who appoint the CEO. If the CEO decides to pay employees more, the board will change him because shareholder put money to get money out, not to give to employees.

Companies can give "shares" to employees, which means excess profits can be made dividends out of which employees "touch a bit".

If you would have your own company (privately own and full control) you are of course free to share the excess profit as you see fit.

Edit: and of course, share buy back avoids some taxes that you must pay, which in other schemes would have to be paid.