Why do CEOs get so handsomely paid? 2 min read

why do CEOs get paid a lot, frequently many times compared to the company’s employee?

one of the reason would be because of the level of accountability involved.

becoming a CEO means that you have to admit everything (well, almost) that went wrong in your company — is your responsibility.

What’s accountability?

accountability means that you own the responsibility of your actions, decisions, outcome.

the Lyft case

David Risher – CEO of Lyft – published its quarterly earnings and company shares surged more than 60%. However, most was erased after Lyft’s chief financial officer corrected a major mistake in the earnings.

this clerical error in 2024 shows that the percentage 500 basis points, while in reality it should be 50 points. there’s an additional zero added by a simple mistake by the CFO.

what did the CEO do?
he took the responsibility. the accountability.

“First of all, its on me.”

“We go through hours and hours of checking and double checking before something like this goes [public]. It’s an unacceptable error. Again, ultimately its on me—I’m the CEO, the buck stops with me.”

the meaning of accountability

accountability means owning something.
accountability means owning the result.
accountability means owning the implementation.
including the scar tissues.

it’s not entirely pleasant.

but only by having accountability, you will then get the whole picture, a wholing experience, and the whole value.

embrace the accountability

FROM NOW ON:

1. Accept complete, 100 percent responsibility for everything you are and everything you will ever be.
2. Refuse to make excuses or to blame other people for your problems or shortcomings.
3. Stop complaining about things in your life that you are not happy about.
4. Refuse to criticize other people for anything.

You are responsible.
If there is something in your life that you don’t like, it is up to you to change it.

You are in charge.

that’s a quote from the “The 21 Success secrets of Self-Made Millionaires” by Brian Tracy — a really good reminder on how someone has to be accountable.