alt Hacker NewsOk, let's follow that logic. If IPO makes CEO much, much richer but generally also makes company and workers better off (but to smaller degree), does IPO make workers more undercompensated? Nobody lost anything for the CEO to gain. Also is "funneling" (that's an interesting choice of word) investors money into company stock a bad thing? Why would it be? I'd say it's a very, very good thing and it's in almost always 100% voluntary to buy stocks.
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Presumably there's some level of progressive taxation where the top rate is between 0% and 100% that most helps the median person.
The problem is that people with power are largely incentivized to push this rate lower than the optimal-for-the-median-person rate in order to benefit the wealthy at the expense of everyone else.
>If IPO makes CEO much, much richer but generally also makes company and workers better off (but to smaller degree), does IPO make workers more undercompensated?
Yes, obviously. The bulk of work of the company is done by the workers. That is to say, most of the value is generated by the labor of the workers. If a commensurate share of the profit is not returned to the employees, they’ve clearly been undercompensated.