By using this site, you agree to our Privacy Policy and our Terms of Use. Close
richardhutnik on 01 May 2012
Edit Thread
SamuelRSmith said:
NJ5 said:
SamuelRSmith said:

What does it matter whether or not I think they deserve the money? It's not my money, I don't have a claim to it, and so I cannot rightfully tell a business where to spend it - and that counts if I am just a regular citizen, or a member of Government.

It matters as much as any other opinion that you may have. IMO it's quite normal for people to discuss these things, especially since many of us actually work at companies which have CEOs.

These types of discussions tend to follow onto that something must be done to cap the upper-limit on wages, which angers me, because people really don't believe in property rights, anymore. Hence my flippant comment.

There is a thing where a business would end up having a budget.  Businesses do need to evaluate what their CEO is worth.  What you have now is that the owners of the company are put in a place where they can have little to no say in what they management of their company is compensated.  The executives will play a game, pat themselves on the back, and pay themselves a ton.  The thing about exsecutive pay is the guys being paid aren't the owners of the company, they are hired hands that the owners pay to run something.  According to property rights, owners should also be liable for the things they own, doing damage.  However, a corporation is a government chartered exception to this, that enables absentee owners.  Thus, the normal standards of property rights end up getting bent favorably for the owners of the company so they can avoid liability.   It should be no wonder in such a situation, that executive compensation would get way out of wack.   You seen now in this environment that, because of the way things are, almost no executives ever go to jail, even if they had a big hand in the financial meltdown and wiped out the life savings of a bunch of people.