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340
Points

Cap all executive pay proportionate to worker’s wages

We need to force the leaders of industry to recognize that they are LEADERS, and to hold them accountable for GREEDY behavior.  Put a cap on the amount of assets executives can take from a company, proportionate to the amount the workers are paid.  Force them to have a conscience.  Cap Executive pay so they can’t make more than 20 times what the lowest paid employee in their company is paid. 

Our founding fathers tried to write tax laws based on “fairness.”  Fairly paying EVERYONE well will make our whole country’s economy stronger. 

Apply the cap to firms of all sizes.

My husband works for a large US corporation where the CEO rewarded himself with a multi-million dollar bonus for boosting profits on the company books.  He boosted those profits by cutting benefits for all its clerical middle-class employees!  The workers took a pay cut and a benefit cut – and the CEO was rewarded with millions for taking it from them.   

In 2007, I was a payroll temp for a medium-size business where the two owners paid themselves more money than the total amount they paid all 67 of their employees, combined.  Their full-time family-supporting employees worked 50+ hours a week, were paid wages below the poverty level, and no benefits.  Then at Christmas, I was instructed to tear up the employee’s Christmas bonus checks, because the owners decided to buy themselves new sports cars, instead.

Just because a worker is less skilled, doesn’t mean they don’t WORK just as hard, and don’t deserve to be compensated a living wage for it!

3 Comments  »  Posted by WorkingParent to Economy, Education, Health Care, Additional Issues on 1/13/2009 10:23 PM

Comments

 
Bob P Alameda
1/14/2009 5:31 AM
The real issue here is corporate governance.  Although a corporation has many constituencies - Employees, customers, suppliers, stockholders, creditors, and the general public - only the stockholders are represented on the board (as a rule).  Yet the consequences of corporate disaster are too great to ignore these other interests.

The federal government needs to encourage states to develop more representation corporation laws.
 
cantordust
1/14/2009 5:33 AM
I like this idea, but I think it's going to have problems with the Law of Unintended Consequenses.  If we require that executive pay is proportionate to the pay of the lowest paid employee, then that really has to be lowest paid *full-time* employee.  Surely we can't tie executive pay to the pay of the high school kid who comes in once a week to work in the mail room.  

But then under that rule, it becomes more efficient for a company to hire 3-4 part time janitors whose pay won't count in the formula than a single full time janitor whose pay will count towards an executive pay cap. 
 
MrTnTexas
1/14/2009 6:52 AM

Government has a hard ewnough time tring to run itself. Stay out of private business.  The share holders of a company hold the executivies to accountability.  Get off the green envy bus.

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