Capping Pay Of CEOs Is the Way to Go

[UpInArms]

excerpt:

According to the standard protocol for such scandals, it's only a matter of time before the board's chairman and members of the compensation committee will have to resign, just before the whole lot of them are summoned before some outraged congressional committee. Then poor Arthur Levitt or John Bogle will be recruited to head a blue-ribbon panel to come up with a new governance structure -- one that separates the exchange's profitable trading functions from its regulatory ones, which everyone will agree never should have been combined in the first place.

This focus on governance, transparency and eliminating conflicts of interest is fine as far as it goes. But two years after Enron broke into the national consciousness, I'm coming to think that it doesn't go far enough.

<snip>

More important, the temporary caps would wring out of the corporate culture the set of norms and expectations that developed over 20 years, and got us to the point where $5 million a yearwas considered the minimum wage and it was common for chief executives to be paid 1,000 times the average American worker.

...more...

It's about time someone brought this obscenity into view.

[aquart]

Yes.

How about: not a dime more than 100 times the lowest paid worker in the company? Including outsourced payrolls.

So if that little girl in Thailand is making 50 cents a day, the CEO would be entitled to $50 a day.

Oh, but no CEO could live on $50 a day. Well, you could raise the CEO pay, or raise the salary of the Thai girl. Or bring the job home.

[aquart]

1. Yes.

How about: not a dime more than 100 times the lowest paid worker in the company? Including outsourced payrolls.

So if that little girl in Thailand is making 50 cents a day, the CEO would be entitled to $50 a day.

Oh, but no CEO could live on $50 a day. Well, you could raise the CEO pay, or raise the salary of the Thai girl. Or bring the job home.

[Flying_Pig]

2. Let them pay what they wish .....

then we just tax the shit out of these greedy bastards, and the corporations too. Problem solved.

:evilgrin:

[camero]

3. Link please

I think it should be 10 times the living wage. Say the living wage is $10 an hour. Then the CEO gets $100 an hour.

Not a bad deal, don't ya think?

If the poor get a raise then the rich gets a raise. The fates would intertwine.

[UpInArms]

4. link to editorial

http://www.washingtonpost.com/wp-dyn/articles/A32694-2003Sep18.html

sorry :(

[gristy]

5. They used to TAX the pay of CEOs

That would work even better.