If You Want To Be a CEO Become An Engineer First - How Money Works

Summary

The script explores the lucrative world of Fortune 500 CEOs, highlighting their staggering compensations, with an average of 24 million dollars in 2020. It delves into the journey to the top, emphasizing the importance of education, particularly an MBA from Ivy League schools, and the value of personal branding. The video also humorously suggests steps to become a CEO, including starting a company or working one's way up through corporate roles, while acknowledging the personal sacrifices involved.

Takeaways

• 📊 CEOs of Fortune 500 companies are highly compensated, with the top 350 making over 24 million dollars on average in 2020.
• 💰 In 2021, Tim Cook, CEO of Apple, received 853 million dollars in total compensation, but was not the highest earner; RJ Scaringe of Rivian earned 2.3 billion dollars.
• 🚀 Elon Musk, despite owning more than 20% of Tesla, was awarded more than 10 billion dollars in options, highlighting the significant earnings potential for CEOs in successful tech companies.
• 🛌 The script humorously suggests learning how money works to become an 'egregiously overcompensated corporate fat CEO', with a plug for Helix mattresses for better sleep, a prerequisite for such a role.
• 🏫 The majority of Fortune 500 CEOs have a college degree, with an MBA being a common qualification, indicating the importance of higher education in reaching top corporate positions.
• 🎓 Harvard and other Ivy League schools are disproportionately represented among CEOs, suggesting the value of networking and prestige associated with these institutions.
• 🔧 97% of the CEOs studied engineering as undergraduates, demonstrating the preference for technical and analytical skills in business leadership roles.
• 💼 Starting a career in a big company or a promising startup can be a path to becoming a CEO, with the former offering a more established route and the latter potential for rapid advancement.
• 📈 Personal branding and networking are crucial for career progression, especially when transitioning between jobs or seeking executive roles.
• 🏆 The path to becoming a Fortune 500 CEO is competitive, with only a small percentage of CEOs being founders, and the rest working their way up through corporate roles.
• 🤔 The script ends with a reflection on the personal costs of pursuing such a high-stress, high-reward career, including the public scrutiny that comes with being a CEO of a public company.

Q & A

What is the average compensation for the top 350 CEOs in the US in 2020?

In 2020, the top 350 CEOs in the US made over 24 million dollars on average.

How much was Tim Cook, the CEO of Apple, awarded in total compensation for 2021?

Tim Cook was awarded 853 million dollars in total compensation for his work in 2021.

Who earned more than Tim Cook in total compensation in the year mentioned in the script?

RJ Scaringe, CEO of Rivian, earned more than Tim Cook, taking home 2.3 billion dollars in total compensation.