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Shareholders should be able to vote on the CEO pay as a multiple of the average worker in their company.
In Europe the average CEO compensation package is 40 times the average worker's in Japan it is 20 times - in America it is 500 times! That inflated compensation level is often justified by how hard the CEO has 'worked' to layoff and outsource.
A company's success is the results of ALL the workers in the company, not just the glorified managers, including the CEO. Ofter the real success driver is found elsewhere in the company.
Shareholders should be allowed to limit management compensation to a multiple of the average worker's salary. If a company is successfully, all boats should be lifted up, not just the million dollar yachts.
The shareholders should be able to define executive pay any way they wish and the Executive board should not be able to vote on their salary despite their ownership interest, IMO. Of course, getting these things onto the shareholder ballot are a whole 'nother matter.
I'd rather see all pay tied to business performance/unit performance. That is one of the reasons companies in which employees who get owership shares as a compensation option do well. The employees have a vested interest in the success of the company.
Shareholders should be able to vote on the CEO pay as a multiple of the average worker in their company.
In Europe the average CEO compensation package is 40 times the average worker's in Japan it is 20 times - in America it is 500 times! That inflated compensation level is often justified by how hard the CEO has 'worked' to layoff and outsource.
A company's success is the results of ALL the workers in the company, not just the glorified managers, including the CEO. Ofter the real success driver is found elsewhere in the company.
Shareholders should be allowed to limit management compensation to a multiple of the average worker's salary. If a company is successfully, all boats should be lifted up, not just the million dollar yachts.
Well, I guess I would be against any government-imposed limitation on salary.
As it stands, in the real world, the stockholders of a corporation actually do have the 'right' to impose such guidelines, if they all get together and vote to amend the bylaws of the corporation.
It seems that people who own stock no longer really care how a company is run, or what the executives are paid, so long as their own stock goes up. It used to be that people bought shares in a corporation looking for annual dividends. Now, they simply want a short-term rise in the stock so they can sell out.
You can always buy one share of stock in a corporation and go to the annual shareholders meeting, stand in line, and voice your concerns (indeed, the annual Disney shareholder meeting is always verging on riot, due to number of small shareholders who wish to voice all sorts of complaints, a few even related to Disney).
The shareholders should be able to define executive pay any way they wish and the Executive board should not be able to vote on their salary despite their ownership interest, IMO. Of course, getting these things onto the shareholder ballot are a whole 'nother matter.
I'd rather see all pay tied to business performance/unit performance. That is one of the reasons companies in which employees who get owership shares as a compensation option do well. The employees have a vested interest in the success of the company.
Ownership shares, like the program that Wal-Mart is ending, and one way to get collective rewards. The other way is to tie exec pay to the common worker's pay. They are totally out of whack, and while shareholders will never get to 'set' salaries, and I don't think that is their role, they could vote on a multiple of average worker cap, and make the CEO and other managers abide by the ratio limit.
Shareholders should be able to vote on the CEO pay as a multiple of the average worker in their company.
In Europe the average CEO compensation package is 40 times the average worker's in Japan it is 20 times - in America it is 500 times! That inflated compensation level is often justified by how hard the CEO has 'worked' to layoff and outsource.
A company's success is the results of ALL the workers in the company, not just the glorified managers, including the CEO. Ofter the real success driver is found elsewhere in the company.
Shareholders should be allowed to limit management compensation to a multiple of the average worker's salary. If a company is successfully, all boats should be lifted up, not just the million dollar yachts.
The numbers have changed a bit from the 1980's. Back then Japan was 40 times and the US was 400 times.
I would be in favor of this but you have to be carefull of the side effects. Most likely all the low paying jobs would be subcontracted so they wouldn't count in the average.
But shareholders can vote - simply by not buying stocks of companies who are managed against your opinion or interest. (Paying anyone $50M in bonuses is against any company's interest). It was proven thousand times that $50 bonus doesn't make ANYONE perform better than a $5M bonus. These companies are just throwing their money to garbage.
The numbers have changed a bit from the 1980's. Back then Japan was 40 times and the US was 400 times.
I would be in favor of this but you have to be carefull of the side effects. Most likely all the low paying jobs would be subcontracted so they wouldn't count in the average.
I'm thinking that they are doing that anyway (outsourcing), so maybe the only way to their black hearts is thru their wallets - give them a few dollars extra for keeping their workers here.
No compensation system is perfect. If you base it on stock, you risk executives conducting imprudent mergers and other attempts to inflate the stock price that might not be in the long term interest of the company.
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