Business Quote by Peter Thiel
“A company does better the less it pays the CEO.”
About This Quote
Source Book: Zero to One by Peter Thiel, 2014
Companies that keep executive pay low tend to allocate more resources to productive activities, improving performance.
In simple terms: Low CEO pay can boost company performance.
Key Takeaway
Consider aligning compensation with value creation.
Themes
business strategy
leadership
incentives
Mood
critical
analytical
Type
business
philosophical
When to use this quote
- startup budgeting
- corporate governance
- employee motivation
Key Concepts
agency theory
resource allocation
Questions to Reflect On
- How does compensation affect innovation?
- What balance yields optimal performance?
A Different Perspective
Excessively low pay may demotivate top talent.
![“[S]ometimes, when you are a food person, the possible irrelevance of what you are doing doesn’t cross your mind until it’s too late. (Once, for example, when I was just starting out in the food business, I was hired by the caper people to develop a lot of recipes using capers, and it was weeks of…” quote by Nora Ephron](https://sms4smile.com/quotes/img-quotes/d79/nora-ephron-1217_business_s-ometimes-when-you-are-a-food-person-th_980.jpg)
![“If the State does not acquire supremacy over [vast private] enterprises, it becomes their puppet, and they become the real State.” quote by Bertrand Russell](https://sms4smile.com/quotes/img-quotes/bad/bertrand-russell-69_acquire_if-the-state-does-not-acquire-supremacy_1379.jpg)