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Do you think we should have a maximum wage for publicly traded companies?
I believe there should be a maximum wage for publicly traded companies, one economist believes $10 million should be the maximum wage which to me is still high but better than the $557 million that the highest paid CEO gets as total yearly compensation. Another option that might work better for the free market fans would be to break down some of these companies regionally rather then have one company service the whole country or sometimes the whole world. That would help with lowering executive wages and also help with the too big to fail problem.
There are plenty of excellent reasons for not allowing companies to become "too big to fail" besides overpaid CEOs, but that's another rant.
I, personally, don't support the idea of a maximum wage because I think that companies should be able to offer what they think they need to offer in order to attract the best talent available to them.
Frequently, the CEOs making the most money are the ones running failing corporations. Seems unjustifiable at first, but shouldn't a CEO working 80 hours a week to turn around a hot mess make more than someone who can turn big profits without breaking a sweat?
Also, you have to consider that the bulk of CEO's earnings are usually bonuses based on performance and unrealized capital gains from stock options that come largely from the increased value that their leadership caused.
Even when companies are tanking and CEOs are taking home multi-million dollar bonuses, it may be the judgment of the board of directors that their CEO is still the right man for the job and big bonuses may be what it takes to keep him from seeking greener pastures. And it's worthwhile to ask whether the company's poor performance is really the CEO's fault. Did buggy-whip factories fail because of poor management?
Ultimately it is the board of directors who sets the salary for the CEO and other top executives, and they are elected by shareholders, which seems fair to me. The tragedy is that shareholders tend to look for short-term stock gains rather than long-term viability, and to that end, they get what they pay for.
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Is HubPages publicly traded?Yet to find out this detail about this company. Wouldn't it be awesome to be able to be part of the company's earnings as a stockholder?
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Does the United States need a maximum wage as well as a minimum wage?In response to a huge increase in inequality of income and wealth a movement has begun in support of establishing a maximum wage. CEOs would be...
by rhamson3 years ago
The CEO of Gravity, a credit card processing service, cuts his personal pay from a million dollars a year to give the minimum wage earners in his company $70,000 a year. The workers describe the raise as freedom, family...
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http://www.foxnews.com/politics/2011/07 … k1%7C77674If businesses could play by the rules, perhaps they wouldn't need to be watched...
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I get a lot of people from all over the world saying America ruined their culture. We ruin their youth with our influences etc... American businesses have been established in other countries and I know we didn't just...
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