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Kasz216 on 20 November 2012
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Mr Khan said:
Kasz216 said:
Zappykins said:
Unions aren't the problem. It's is corporate greed and out of control top employee compensation. The uses to be a rule that the lowest paid employee couldn't be more than 16 times the highest paid employee. In the USA today, it is sometimes over 3,000 times! Unless you have cured cancer, I see no reason to justify paying some executive a 50 million dollar salary.

When Hosted filed bankruptcy a few years ago, 110 million dollars that should have gone back into the business gone. And the executives have been giving themselves hansom raises - even in the past year!

I know it seems like the Unions are evil - but they are the only thing holding the people that actually make the stuff to be treated as surfs or worse. As much as it pains me to say it - I was brought up thinking unions were evil and just caused companies to go bankrupt. It propaganda from the richie-rich that are blaming the workers.

As business need to know and treat it's talent well. Hostess is just an example of vulture capitalism.


Back then coprorations were smaller and worth much less.

A 50 million dollar salary certainly fair if the company is making 50+ billion a year.

And imagine how much good they could be doing if those 50-million-a-year fat-cats were only taking 500,000 a year (still more than enough to be beyond comfortable) and investing the rest of it in R&D or more hiring or more development? How many employees could you hire with 49.5 million?

The bulk of major executive compensation should be in stock options. That way if they really want to get rich, they have incentive for their company to do well, instead of the "plunder and ditch in your golden parachute" philosophy that far too many businessmen have.

Why would you ever work for a big corporation if that was the case.

Say your a good CEO... and you max salary is set at 500,000.   Why would you work for a giant ass complicated company, when you could work at a much smaller, less complex company, that's less stressful and doesn't take up nearly as much of your time?

 

Salary caps cause other factors to gain increased importance.   Which is why in fields where they exist there are usually tigher labor controls.


For example sports teams in the US have drafts and restricted free agency. (Which i feel should be illegal but i guess isn't because it's a bargin made with the union?)

If it wasn't for the draft and restricted free agency, all of the stars would go to California, Florida, New York and then any state that doesn't have income taxes.

 

Do the same thing in corproations, and CEO's will move to buisnesses that can pay the cap, and other areas.

Well and overseas.

Why stay here if Europe is suddenly getting all the best CEO's?

 

Such policies seem to always be made on the theory that "Things should be like this" without a look at the practical facts or an aknowledgement that were are in fact part of a global economy.