Shareholders elect a CEO based on expected effect on dividends and share prices (for spherical capitalists in a vacuum, in reality class consciousness, nepotism, etc play into it)
Profit is a function of revenue minus expenses (such as wages); to increase this, you can either get more out of the labor you’re buying or buy that labor at a lower price.
I’m sure you might be able to find a “better” CEO who fails to prioritize profit at the expense of the owners, but capitalists who only pick losers get out competed by more efficient ones.
That is extremely naive and narrow view of the job of a CEO.
Which part are you having trouble with?
Shareholders elect a CEO based on expected effect on dividends and share prices (for spherical capitalists in a vacuum, in reality class consciousness, nepotism, etc play into it)
Profit is a function of revenue minus expenses (such as wages); to increase this, you can either get more out of the labor you’re buying or buy that labor at a lower price.
I’m sure you might be able to find a “better” CEO who fails to prioritize profit at the expense of the owners, but capitalists who only pick losers get out competed by more efficient ones.