> CEOs work isn't any more demanding than it used to be, either.
I think it has, actually. The CEO's job became more complicated as a result of the increased complexity in the world. There used to be only brick-and-mortar and mail order, now there is internet. They used to advertise on tv, radio, and newspaper. Now they can advertise tv, radio, newspaper, online ads, and social media influencers. They didn't have to worry about ransomware, now they do. And so on.
It’s more complex but I would say the job itself is actually easier. I think managing a company with letters, written notes, and phone calls would be much more challenging.
Has it gotten 10x harder? Was running the vast agglomeration of companies that was ITT really less difficult than running today's sprawling companies? Do you think the CEOs of today's companies get into the nitty gritty of all of those issues you talk about, or do they, as always, delegate the real work of understanding those issues to their subordinates?
Setting direction for others has always been the job, and the difficulty of that can vary.
If we measure a CEO’s job difficulty based on how many years a typical company in their industry can safely operate while stagnating, then the job has become many times more difficult in the last 40 years in some industries. In others, perhaps only twice as difficult.
That is not to say that salaries should stay high, but we would look for reduction to come from systemic productivity gains in management that have come to other white collar professions: software, more efficient management hierarchies, cultural changes in communication, etc.
I’m not sure it can be quantified except perhaps by something like “amount of money necessary to motivate a sufficiently skilled person to do this job.”
I’m certain that they delegate those issues to subordinates; do you feel that there is skill involved in managing and supervising subordinates, and melding their disparate opinions into a coherent and profitable direction for the company?
I think it has, actually. The CEO's job became more complicated as a result of the increased complexity in the world. There used to be only brick-and-mortar and mail order, now there is internet. They used to advertise on tv, radio, and newspaper. Now they can advertise tv, radio, newspaper, online ads, and social media influencers. They didn't have to worry about ransomware, now they do. And so on.