Do executives deserve the majority of their company's output? (collection, free market, cost)
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They're free to buy as much stock as they want in any public company. If they work for a private company, they're free to quit and start their own business and take on all the risk that entails.
If none of that is palatable to them, they're free to immigrate to the country that better fits their social, political and economic philosophies.
Perhaps each employee should be granted stock automatically, making each a shareholder. Then they, as shareholders, can vote to cut their own pay to minimum wage so the stock price goes up! D'oh!
Employees tend to be the most fortunate ones in a corporation because no matter how the company performs financially they get paid. If the company goes under they get paid while shareholders lose their capital investment. Employees have every option to buy shares in a company and sharing the same risks as other shareholders. I do understand companies that have profit sharing with workers because it gives employees an incentive to be the most productive and keep costs down.
The real problem in corporations are the management who reap enormous benefits and pay even when their poor decision making and performance destroys a company. These executives vote themselves these 20 million dollar severance packages and suck a company dry. People always talk about how evil the banks, Airlines or telecom companies are but it’s the management who are often responsible for problems and poor customer service that destroys a brands reputation. Shareholders which include pretty much everyone (through pension funds, 401Ks, IRAs, other retirement and brokerage accounts, every person is directly or indirectly invested in many companies through their parents, spouse or kids) suffer.
Shareholders have a right to vote but the way voting is structured the board of directions of a company make recommendations and nominate themselves to reappointment. It is very hard to get shareholder proposals put up for voting and when they are the board of directors recommend against it. There is also no way for shareholders to communicate with each other in a forum and coordinate their voting and proposals. Only shareholders with 5 to 10% ownership in a company get certain rights.
You’d have a point if the U.S wasn’t already the largest economy is the world decades before the pentagon was even a thought and before the usd replaced the pound.
That’s what rapid industrialization plus Latin American colonialism and the largest western population gets you.
The sustainment of the empire after WW2 was because of what I mentioned.
Perhaps each employee should be granted stock automatically, making each a shareholder. Then they, as shareholders, can vote to cut their own pay to minimum wage so the stock price goes up! D'oh!
How much stock does each employee get?
Do they vote on the wages of every existing and new employee individually?
What do the shareholders who have invested millions or billions get?
Who manages this whole process and how are they compensated?
How does the company make money if all they’re doing is voting on each other’s compensation all the time?
I don't, I think companies should be worker run democratically since they are the ones who keep the company operating, not the ones who manage the capital.
So let us know the name of this utopian company after you create it, and we will all go work there.
And in your business model, when the company gets sued, do all the workers in the company pay for the lawsuit?
I didn't think so.
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