Cap on CEO Salaries

[TulipsAndSunscreen]

I think capping anyone's salary is ridiculous and erodes the incentive for talented individuals to participate in the economy. How many John Galts will just walk away?

+1

Love the Atlas Shrugged reference!


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[scrub-jay]

+1

Love the Atlas Shrugged reference!


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Me too!

[SoonerTexan]

Sky should be the limit after paying employees living wages and offering healthcare...

That's not a bad point. That's the better end to regulate it on.

[diggitydot]

That's not a bad point. That's the better end to regulate it on.

Tying executive pay to the lowest paid employee gives the executives incentive to bring up the wages and benefits of their lower rungs of employees.

[ladymoreta]

Sky should be the limit after paying employees living wages and offering healthcare...

I agree with this. I don't like the idea of government regulation on the maximum amount someone can earn, but I think our minimum wage is much too low. Some companies take the initiative to pay higher wages, but many of them won't until the legal minimum is raised. Doing that by creating restrictions on CEOs is backwards and asking for more bureaucracy and loopholes.

[SoonerTexan]

Tying executive pay to the lowest paid employee gives the executives incentive to bring up the wages and benefits of their lower rungs of employees.

So let's compare 2 companies.

Company A is a smaller company with less than 500, mostly white collar employers. (say a small software or other service company)

Company B is a global company with thousands of employees, many blue collar. (Retail, manufacturing, etc.)

Should the CEO of company A really be paid more than Company B just because of the makeup of its workers? Even though running Company B is probably the harder/bigger job?

And what about contractors? Let's say Company A uses another company for basic staff like maintenance and janitorial?

So then what? Do we have some ridiculous calculation based on company size and makeup for determining salaries? (that I'm sure will go the way of the tax code...complication and loopholes) That's why it is stupid.

[diggitydot]

Cap on CEO Salaries

That's why it is stupid.

Wow. Tell me how you really feel.

I'm not talking about forcing companies to limit executive pay, only the incentives for those who voluntarily choose to do so.

[SoonerTexan]

Sorry, that was harsh.

I'm just trying to point out that it isn't so black and white.

[diggitydot]

Sorry, that was harsh.

I'm just trying to point out that it isn't so black and white.

I don't think anyone was really implying that it would be an easy thing to accomplish, but I also don't think it's impossible.

[SoonerTexan]

I wasn't trying to imply you are stupid, but I absolutely think the idea is an irrational one that won't have the intended effects.

[houseelf]

No, this is definitely not a black and white issue. However, if you receive tax favoritism, bail outs, benefit from the FED's manipulation of low interest rates then turn around and pay exorbitant salaries to a handful of people on the tax payer dollars while the lowest paid workers can't afford things like health care and childcare, there is a reasonable expectation that things should be reconfigured. Like so many issues, this isn't binary. All executive pay shouldn't be capped and yet some executive pay absolutely should be capped or the system is rigged to take from the poor and give to the rich.

[diggitydot]

No, this is definitely not a black and white issue. However, if you receive tax favoritism, bail outs, benefit from the FED's manipulation of low interest rates then turn around and pay exorbitant salaries to a handful of people on the tax payer dollars while the lowest paid workers can't afford things like health care and childcare, there is a reasonable expectation that things should be reconfigured. Like so many issues, this isn't binary. All executive pay shouldn't be capped and yet some executive pay absolutely should be capped or the system is rigged to take from the poor and give to the rich.

Excellent points.

[TulipsAndSunscreen]

This type of measure was just defeated in Switzerland FWIW:

http://www.nytimes.com/2013/11/25/bu...html?hpw&rref=

[PrincessFiona]

Lol. I almost posted that earlier.

[SoonerTexan]

Yes, this has never really come up in the US that I know of, the article I posted was about the Swiss vote.

Interesting that it was banking that pissed people off there as well. Clearly banking and finance companies are doing a lot of damage to the image of corporations as a whole right now!