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Maximum Wage Law

Just like we have legislated a minimum wage and increases over the years, Congress and the President should implement a wage maximum in which employees of businesses cannot be provided wages and benefits (including stock options, etc.) that are more than 20 times the pay of the lowest paid employee. Also, the legislation should mandate that executive/officer pension/profit sharing plans cannot be better than the plan(s) provided for the non-executive/officer employees. The media, businesses, and politicians sometimes grossly exaggerate the business needs by purporting that only highly paid executives have the brain power to successfully guide a business to profitability. As I understand it, the vast majority of business leaders began their careers in lower wage jobs years ago and showed that they had characteristics that identified them as able to provide broader leadership. They were not unable when they received substantially lower wages in the early years of their career. After all we have presidents, congressmen/women, governors, state legislators, department directors, and small/medium sized business owners who aren’t paid these obscene salaries and many of them are able to lead multi-million and multi-billion dollar organizations effectively. Such legislation will not stop competition in the industry or business expansion or profitability, it simply stops greed from spreading, diseasing, and ultimately stripping resources from and bankrupting businesses and it ensures that employees are rewarded along with executives/officers for business success/profitability. Each business with a sound product, service, and plan will be able to sell their wares and increase their business and profitability. In fact, they will have, for business expansion and investment, the multi-millions/billions of dollars they were previously paying out to executives and officers. Stockholders will still be compensated according to the value of the stock in the market, which is likely to increase once executive salaries and benefits are a more fixed cost. Indeed, the expense reduction in executive/officer pay and the reality of a more fixed expense should cause a surge in stock prices across the board. If company officers/directors have sound fiduciary governance in mind, they should not consider their salaries and benefits an entitlement to be protected by the company. After all, they don't consider their employees pay and benefits and entitlement and they do the lion's share of the work. The legislation will promote a business practice that allows the company to prosper without oppressing its employees and will still provide the executives/officers a vastly above average living and thus should not cause the executives/officers to disdain such legislation. Such legislation will ensure that companies remain focused, strong, and profitable allowing them to greatly reward both executives/officers and employees. It will also remove much of the pay based incentive that now motivates executives/officers to manufacture bogus revenue, expense, and profitability data that inflates company worth to Wall Street. What do you think?
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