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itake a day ago

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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system7rocks a day ago | parent [-]

They bank it as any insurance company should do. Invest it cautiously. Hire sound decent people to run it with solid levels of accountability (including from a board of directors that is mostly made up of a rotating number of clients). Do it from the beginning of the company. Grow your staff slowly. Build enough of a cushion that can last the company years. Right? Right?

I'd run that company well for $250k/annually + benefits (an enormous amount of money).

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itake a day ago | parent [-]

> They bank it as any insurance company should do. Invest it cautiously.

I hope they aren't investing that capital. AFAIK, insurance capital needs to be liquid, for it to be ready for a payout.

You still didn't address my point is that $25m/yr is a drop in the ocean. "investing $25m properly" will have zero impact on the business.

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Snoddas 20 hours ago | parent [-]

It will have atleast be > than zero, and doing it every year instead of giving it away to some overpriced CEO will it will accumulate.

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EraYaN 19 hours ago | parent | next [-]

I don't think you quite get how little money it is for these types of operations, 25m is essentially missing 2-3 zeros before it becomes anywhere near usable and even worth it to bother.

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itake 19 hours ago | parent | prev [-]

State Farm’s revenue was $104.2 billion for 2023. His payment was 0.02% of the revenue. That’s basically a rounding error.

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tmnvix 9 hours ago | parent [-]

Wouldn't it make more sense to compare it to profit rather than revenue? They suffered a $6.3 billion dollar net loss in 2023.

	▲	itake 4 hours ago \| parent [-]
		I don’t know. Profit (mostly?) matters to investors and the company’s substantially. His pay was 0.39% of the loss. Still a drop in the ocean imho. Should he have been paid less ? Or more? I don’t know. But what I do know is when people get upset at stock buybacks or CEO pay, the act like if the company didn’t do these things the company would be drastically different.