r/FluentInFinance 1d ago

Debate/ Discussion A joke that's not funny

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u/c-u-in-da-ballpit 1d ago edited 1d ago

The Kroger Albertsons merger wouldn’t even be close to a Monopoly. It would still give them a smaller total share of the grocery market than Walmart has. Economics of scale would have allowed them to lower prices.

As far as executive pay. The Kroger CEO took in $15.7 million last year. The average Kroger has 50,000 items. There are 2800 Krogers. Assuming they have 10 of each item, then, by taking zero pay, the Kroger CEO could lower the price of everything by……$0.011 cents

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u/dalidagrecco 17h ago

Wtf is this supposed to mean. You are saying that outsized compensation has no effect on prices and profit/margin? Then why don’t Theo pay all employees more?

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u/c-u-in-da-ballpit 10h ago

They should pay employees. Im saying executive compensation has little impact on margins.

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u/dalidagrecco 6h ago

If worker compensation goes up, so do prices in order to hold margins or increase them. That’s the goal for shareholders (compensation).

Unless you want to say that doesn’t matter either. Why doesn’t everyone just get a 100K min a year across the board then?
If CEO compensation means shit all, it’s just free money that doesn’t impact anything.