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Old 02-22-2009
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If that is a response to me Beez...I don't want Congress to set any limits or be involved in wages per se.
But the social contract has been broken between business and labor. Fortune 500 CEO's now average around 350 times the wage of the average worker. In the 1960's it was 60 times the average worker. The wage multiple in other delevoped countries in Asia and Europe is far closer to our 1960's average. I simply suggest that we place a cap on the wage multiple...say 100 times the average wage. If the average wage is a poverty level 20k...the CEO still could pull down a couple of million. If the average wage goes to 40k...the CEO salary could double. I think there would be no shortage of talented volunteers for those jobs. The current compensation system only encourages the systematic destruction of jobs and the long term healt of our corporations. There is no oversight in far too many boardrooms.
What has happened is a total focus on the next quarters earnings and making the terms of one's personal bonus structure. Sacrificing the long term of the company for the short term...milking that for a few years and then moving on in the game of CEO musical chairs.
The corporation is at the core of a free society. It needs regulation.

Sway...saw your post after I composed this. I hope it addresses your questions. My opinion is that there is NO market force acting on CEO compensation. There is an oligarchy that is self centered and self supporting in far too many cases.
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Last edited by camaraderie; 02-22-2009 at 03:18 PM.
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