What other way to convey security about a company if not by investing in it? Well, that is what some of the greats think and apply. CEO from well-known companies.
According to a report by the Invest Billionaire portal, CEOs of companies such as Microsoft and Chase Group have significant personal stakes in their companies.
Satya Nadella, CEO of Microsoft, would have shares there for an amount of US$232 million. Although this does not represent a large part of the company, it does convey a strong message of confidence in what is being done.
While every company is different, CEOs are often responsible for expanding the company, driving profitability and, in the case of public companies, improving stock prices.
In the case of Amazon, Andy Jassy, its CEO, also has a stake of more than US$211 million. Which is relatively higher than the amount invested by Shantanu Narayen, CEO of Adobe, whose figure barely exceeds US$176 million.
In many companies, CEOs are chosen by the board of directors. In the case of the CEOs of the 350 largest companies in the United States, they earn an average of $24 million annually, which is 351 times more than the average employee.
Studies suggest that 45% of the company’s final performance is influenced by the CEO. However, other studies say that these affect only 15% of the variation in profitability.
Other CEOs of companies such as Starbucks, Chase and T Mobile also have money invested in their companies through shares, as confirmed by the portal.