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ISSUE 7
Manipulation Risks: CEOs may focus on boosting short-term stock prices—through methods like stock buybacks—at the expense of sustainable growth. It’s like over- decorating your house for Christmas to impress the neighbors, while neglecting the foundation underneath. Short-Term Focus: Decisions driven by stock-based incentives can lead to cost-cutting measures that harm the company’s long-term health, such as slashing training programs or employee benefits. Thomas Piketty’s Insights In his book Capital in the Twenty-First Century, French economist Thomas Piketty dives deep into the issue of income inequality. He argues that CEOs often have disproportionate power to set their own salaries, and these salaries are frequently disconnected from actual productivity. Here’s my take: Piketty’s analysis reminds me of The Grinch Who Stole Christmas. Just like the Grinch hoards
the gifts meant for Whoville, excessive CEO pay packages—especially when unearned—can feel like resources being unfairly concentrated at the top. However, many economists argue that market forces ultimately determine CEO pay. Companies must offer competitive salaries to attract top talent, much like Santa recruiting the best elves for his workshop. The challenge is ensuring that these salaries actually reflect value creation and don’t simply feed inequality.
Authors: Ayşe Nazmiye Uça
Ayşe Nazmiye Uça is the Founder and Chairman of the Turkish Payroll Association and established Turkey’s first payroll outsourcing company 25 years ago. Her company, Datassist, leads the market in technology-centered payroll services, catering to Fortune 500 companies and major Turkish corporations. Datassist
excels in Regulation Technologies (RegTech) and continues to expand through strategic investments and business partnerships, aiming to offer comprehensive services in an evolving market. This year, Ayşe ranked 20th among Turkey’s top 100 female founders by Fast Company magazine, based on company turnover. Her life purpose is to shape organizations, create new opportunities, and guide her employees toward achieving their career goals.
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