alt Hacker NewsIt’s hard to view insurance as a viable business when overpaying executives has become the norm. Take State Farm, for instance: its CEO was awarded $50 million in compensation over just two years — 2022 and 2023. The industry is rife with waste and high barriers to entry.
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itake • yesterday at 4:45 AM
Lets pretend the CEO made $0 over 2 years and that $50m goes to what?
- $350 annual bonus to the 67,000 employees?
- Lower the cost of the 91 million policies by $0.27 per year each?
- Cover an additional 50 homes in California?
Where should it go?
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> Take State Farm, for instance: its CEO was awarded $50 million in compensation over just two years — 2022 and 2023.
Honestly, no one would care about CEO pay if the insurance companies would just pay out and make customers whole. Instead, there are mechanisms and processes in place to keep premiums coming in and to reduce or refuse claim payouts.