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magnora7 t1_jbfnkiv wrote

I think it's funny how the salaries of everyone but the owners is seen as a fixed asset to be minimized, part of the expense, but the "net profit" is only enjoyed by those at the top of the company. As if human beings who aren't management are a tool like a lathe or a computer that you just buy.

It honestly cracks me up how normalized this is, and how basically no one questions it.

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proactiveplatypus t1_jbgkequ wrote

It’s not going straight into the pocket of Jensen Huang.

The net profit would be paid out either by investing in the company (ie, hiring more or retaining existing talent), paying down debt, or paying dividends to the shareholders.

Nvidia pays a pretty paltry dividend, but those fixed salary employees you mentioned also receive stock as compensation, so they would see some of that profit.

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silenceisbetter1 t1_jbhr3jj wrote

Not only that, Executive pay especially in tech has increased every year for a decade on the % of compensation given in equity

There is some merit in my opinion to be willing as the CEO to bet your own earnings on the company and your ability to lead it, and then they profit when their employees do too because as you mentioned equity is almost a given in tech

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Ericgzg t1_jbi0ozu wrote

Nvidia is a public company. Do you know what public company means?

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magnora7 t1_jbjigi0 wrote

That stockholders are a part of management, and my point still stands?

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Ericgzg t1_jbjn9g3 wrote

Nobody in management even owns 1/4 of 1 percent of shares. Not even the founder. Go read a book or something yeah.

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magnora7 t1_jbjnfoe wrote

My point is still true, that profit is kept largely by management and stockholders. It's literally the definition of the word.

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Ericgzg t1_jbmvkgm wrote

The profit is kept by the shareholders and only the shareholders. I own nvidia. If you own any large mutual funds, you own nvidia too. I think you don’t understand the structure of public companies.

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